BNZ's mortgage market share surges

The Bank of New Zealand's share of the mortgage market surged in the September quarter, according to figures published in its latest quarterly disclosure document (GDS).

Wednesday, January 9th 2008, 5:56AM

by Jenny Ruth

BNZ's mortgage book grew by $1.81 billion to $24.32 billion, its GDS shows. That took its share of the market (based on actual figures from all the mortgage-lending banks) to 16.85% from 16.14% at June 30 and compared with 16.36% in September 2006.

The BNZ figures change considerably the provisional market share figures for the other three major mortgage lending banks. Using Reserve Bank figures as a proxy for the market, ANZ/National had seemed to lift its market share in the September quarter while ASB Bank and Westpac's market shares had appeared to be steady.

With the figures of all mortgage-lending banks, including BNZ, now available, ANZ/National Bank's actual market share eased to 34.31% from 34.42% at the end of June and compared with 34.86% in September 2006. That's even though its mortgage book grew by $1.5 billion in the three months ended September, taking the total to $49.51 billion.

ASB's market share dipped to 22.62% in September from 23.87% in June and from 24.13% in September 2006, even though its mortgage book grew by $790 million to $34.09 billion in the three months ended September 2007.

Westpac, whose mortgage book grew by $640 million in the September quarter to $28.99 billion, saw its market share slip to 20.09% from 20.32% at the end of June but that was still up from 19.63% in September 2006.

BNZ's net profit rose 11.5% to $175 million in the September quarter, bringing its annual result to $683 million, up 12.9% on the previous year.

As expected, Kiwibank's market share surged in the quarter, mostly reflecting its purchase of nearly $700 million of AMP-branded mortgages from HSBC - the latter's mortgage book also shrank for the same reason.

Kiwibank's mortgage book grew by $820 million to $4.23 billion in the three months ended September, taking its market share to 2.93% from 2.49% at the end of June and compared with 2.19% in September last year. (The figures for the June quarter have been revised, reflecting the bank's adoption of the new International Financial Reporting Standards.

Kiwibank's net profit rose 29% to $11.43 million compared with the September quarter of 2006.

HSBC's mortgage market share slipped to 0.96% from 1.51% in June and 1.55% in September last year. It's net profit for the September quarter jumped 27.9% to $9.21 million.

TSB Bank's mortgage share remained steady on 1.25% as its mortgage book grew to $1.8 billion at September 30 from $1.75 billion at June 30. It's net profit rose 16% to $10.9 million compared with the September quarter of 2006.

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