BNZ stepped up mortgage lending in June quarter

As well, BNZ's normalised June quarter profit near doubled, reflecting changes in the fair value of financial instruments, although net interest income fell slightly, its latest general disclosure statement (GDS) shows.

The bank's mortgage book grew by $245 million to $26.01 billion in the three months. That compares with its $126 million growth in the March quarter, $129 million in the December quarter 2009, $196 million in the September 2009 quarter and $637 million in the June 2009 quarter.

Using Reserve Bank figures as a proxy for the market, BNZ increased its market share of mortgages written by registered banks to 15.81% at June 30 from $15.7% three months earlier.

Those central bank figures showed mortgage lending by registered banks slowed to $889 million in the June quarter from $1.47 billion in the March quarter.