First-home buyers surge as mortgage rates tumble
BNZ has reported a statutory net profit after tax of $1.499 billion for the year to Sept. 30, 2025 — down just 0.5% ($7 million) on the previous year, reflecting resilience in a slow economic recovery.
BNZ CEO Dan Huggins (pictured) said the result “reflects the current economic environment as New Zealanders continue to navigate an economy that is taking longer than anticipated to recover.”
The result comes as the Reserve Bank’s 2025 Bank Industry Stress Test confirmed New Zealand’s five largest lenders — including BNZ — would remain solvent even under extreme economic shocks such as a 35% house price fall and 10.5% unemployment. The findings highlight the sector’s strong capital position as it transitions into a lower-rate environment.
Revenue dips but lending growth remains solid
BNZ’s revenue fell 3.7% year-on-year, but total lending increased 4.6%, driven by a 6.4% rise in home lending and 2.2% growth in business lending.
“Over the past 12 months, we’ve focused on what matters most – supporting our customers and continuing to invest in initiatives to make banking simpler, easier and more accessible,” Huggins said.
He added that BNZ had expanded its business-banking support network by hiring over 50 new specialist business bankers nationwide and halving onboarding times for new customers.
“Payap, backed by BNZ and powered by open banking, was launched as a cheaper way to pay and be paid, helping merchants reduce their transaction costs.”
The bank also upgraded its branch and partner network, with all branches now open 9.30am to 4.00pm at least five days a week.
The approach has supported customer growth, with more than 100,000 new customers joining BNZ over the past year. The bank was voted Canstar’s 2025 Best Bank for Small Business and awarded Most Satisfied Customers – Home Loans.
“We also continue to have the highest Consumer Net Promoter Score of any major New Zealand bank,” Huggins said.
First-home buyers drive strong mortgage growth
Huggins said BNZ supported more than 11,500 customers into homeownership, with first-home buyers making up 33% of all new loans.
“Since September 2024, BNZ’s advertised one-year fixed rates have dropped 30% from 6.45% to 4.49%. For a household with a $500,000 mortgage, this equates to interest savings of $376 each fortnight or nearly $10,000 a year,” he said.
Nearly half of BNZ’s home loan customers are now on rates of 5% or less, and more than 50% are ahead on repayments by two years or more.
Deposits hit record high
BNZ’s total deposits rose 5.8% year-on-year to $87 billion, with the bank’s Rapid Save account seeing strong inflows.
“As we move into a lower-interest rate environment, BNZ’s Rapid Save account continues to be a popular choice with one of the best savings rates in market,” Huggins said.
“Over the past 12 months, Rapid Save has paid out more interest per dollar saved than any other major New Zealand bank savings account.”
Well capitalised and ready for recovery
Huggins said BNZ remains well positioned to support economic growth as conditions improve.
“Interest rates have fallen significantly, and New Zealand’s primary export sector is experiencing buoyant conditions driven by high export prices, a lower NZ dollar, and solid production,” he said.
“With the economy turning the corner, BNZ is well capitalised and in a good position to support our customers and New Zealand.”'
For more details, read the BNZ announcement.
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