The overall result for ANZ's New Zealand operations, including its subsidiary ANZ National Bank and the newly registered ANZ New Zealand branch, saw its bottom line profit drop 30.9% to $422 million for the six months ended March.

Far from refusing to pass on cuts in the Reserve Bank's official cash rate (OCR) to mortgage borrowers, the major banks in New Zealand have cut their profit margins to pass on those OCR cuts, according to analysis by Westpac economists.

TSB Bank's cut to its two-year fixed mortgage rate was the stand-out move in the market over the last week.

The National Australia Bank-owned Bank of New Zealand's mortgage book grew strongly in the March quarter after shrinking slightly in the previous three months.

New Zealand's largest bank, ANZ National Bank saw its profit drop sharply in the March quarter as charges for impaired loans soared.

This week at last saw a move down in one lender's floating mortgage rate but neither Reserve Bank governor Alan Bollard nor the politicians are likely to be dancing in the streets over it.

Interest rates jumped and the New Zealand dollar soared after Reserve Bank governor Alan Bollard left interest rates unchanged, even though his statement emphasised the economic risks remain weighted to the downside and the high currency is "unhelpful."

The banks should be forced to disclose the profit margins on their mortgage books, says Geoff Bawden of Prosper Group, formerly Moneyworkz, and immediate past chairman of the New Zealand Mortgage Brokers Association.

Locally-owned TSB Bank continued to grow both profits and its mortgage book during the March quarter while the British-owned HSBC continued to run down its mortgage book while profitability more than doubled.

Economists are more divided than they've been since Reserve Bank governor Alan Bollard began cutting rates in July last year about what his next move should be.

With just over a week to go before Reserve Bank governor Alan Bollard reviews where interest rates should be none of the banks have passed on his last rate cut on April 30 into their floating mortgage rates.

The government-owned Kiwibank's profitability and its mortgage book continued their explosive growth in the March quarter.

Yet another week and none of the banks have passed on the Reserve Bank's latest official cash rate (OCR) cut to customers on their floating mortgage rates, nearly three weeks after the event.

Not only did Reserve Bank governor Alan Bollard slash interest rates again today, he indicated further modest cuts are likely and that rates will remain at or below current levels through to late 2010.

Bank of New Zealand’s home loans book, which accounts for 50% of its total lending portfolio, grew by $500 million to $24.5 billion in the six months ended March, according to information published by Australia-based parent, National Australia Bank (NAB).

Reserve Bank governor Alan Bollard will probably cut interest rates again on Thursday despite tentative signs improving global sentiment and at least partly to offset the rising New Zealand dollar.