Extraordinary volatility in currency and interest rate markets in the December helped drive customer demand for hedging that helped BNZ Capital triple its profits in the quarter. BNZ Capital's operating profit for the quarter of NZ$215 million on revenues of NZ$236 million compared with profit of NZ$68 million and revenues of NZ$89 million in the same quarter a year earlier. BNZ Chief Financial Officer Ken Christie told interest.co.nz that 13 of the 15 biggest intraday moves in the New Zealand dollar post float were in the December quarter of 2008. "We saw an enormous increase in clients who wanted to hedge and interest rate and foreign exchange exposures," Christie said. BNZ's core New Zealand division reported a fall in operating profit to NZ$137 million from NZ$172 million in the same quarter a year ago. BNZ's core New Zealand banking division reported a fall in operating profit to NZ$137 million from NZ$172 million in the same quarter a year ago. Revenues fell to NZ$341 million from NZ$352 million. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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