The Bank of New Zealand’s profitability improved as the economy was hit by Covid-19 and the subsequent lockdown.

The bank, owned by Australia’s NAB, reported a cash profit of $562 million for the six months ended March, up nearly 6 percent on a year ago.

The profit came on the back of higher house lending and lower overheads.

More detailed numbers on the BNZ’s performance will be released later on Tuesday.

Meanwhile, the bank’s senior executives have agreed to give up some of the risk-related parts of their pay packages, which can account for up to half of their annual salary, for this financial year.

BNZ’s parent reported a halving of its six month profit and a move to raise $A3.5 billion to beef up its finances.

This article was originally published on RNZ and re-published with permission.

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