Moody's sees pressure on NZ banks' profitability

Mon, 19 Aug 2019

By Jenny Ruth Aug. 20 (BusinessDesk) - Moody’s Investors Service says slow credit growth, low interest rates and rising costs will weigh on the profitability of New Zealand banks in the next 12 to 18 months. That’s despite asset quality and capital remaining strong. “We expect GDP growth to moderate as slowing growth in New Zealand’s key trading partners is raising external risk, while a subdued housing market will dampen household consumption domestically,” says Daniel Yu, a Moody’s senior analyst. “Profit growth will also moderate...

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