The New Zealand units of two of the world's biggest banks have recorded contrasting financial performances in the March quarter.
The New Zealand branch of JPMorgan Chase posted a $576,000 unaudited March quarter net loss after tax, a big swing into the red from a profit of $695,000 in the same period of last year. Deutsche Bank AG New Zealand posted a $3 million unaudited profit after tax, up from $2 million in the March quarter of 2012. Both figures come from the banks' latest general disclosure statements.
JPMorgan Chase's fall into the red came after a big drop in other operating income and an increase in expenses. Other operating income fell $1.317 million, or 61%, to $858,000 after the bank's trading loss blew out by $2.318 million to $2.707 million. Operating expenses increased $498,000, or 19%, to $3.073 million, with administration costs, technology and communications expenses and travel expenses all rising sharply.
JPMorgan Chase bought ANZ's Custodian Services business in November 2009 and completed the migration of ANZ customers in 2010. It offers capital markets, fixed income, securities, custody and treasury services in New Zealand.
In April a Sydney-based spokesman for JPMorgan Chase New Zealand told interest.co.nz a 91% fall to $2.4 million in its annual profit was a "normalisation" after the previous year's profit was boosted by "opportunistic positions in New Zealand government guaranteed bonds."
JPMorgan Chase operates in New Zealand as a branch of JPMorgan Chase Bank NA of the US.
Deutsche Bank, meanwhile, recorded a $55 million surge in net interest income to $81 million in the three months to March 31, up from $26 million in the same period of last year. However, this was counted by its "FX remeasurement", or translating value between currencies, costing it $52 million more at $75 million. Operating expenses fell $3 million to $7 million and, as in the March quarter of 2012, there were no loan impairments.
Total loans continued falling, down $3 million since December 31 , 2012 to $25 million. That compares with $351 million at March 31 last year. In April a Sydney-based spokesman for Deutsche Bank told interest.co.nz the loan book in the New Zealand General Disclosure Statement was just the "tip of the iceberg" in terms of the Deutsche Bank group's lending into New Zealand as it just covered lending by the local branch.
The bank operates in New Zealand as a branch of Deutsche Bank AG.
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