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Mortgages

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BNZ's March Qtr new mortgage growth slowest in two years

National Australia Bank-owned Bank of New Zealand appears to have held its own in the mortgage market during the March quarter although its net new mortgage growth slowed to its slowest pace in two years.

Wednesday, May 23rd 2012, 12:44PM 2 Comments

by Jenny Ruth

The first of the banks to lodge its disclosure statement for the March quarter, BNZ's mortgage book grew by $179 million to $27.79 billion in the three months, based on its loan-to-valuation ratio (LVR) tables.

While BNZ's figures before the December 2010 quarter may not be strictly comparable, but it's clear that's its smallest quarterly inflow since the March 2010 quarter when, based on its capital adequacy data, it took in a net $126 million.

The latest inflow compares with the $227 million in net new mortgages in the December 2011 quarter, the $305 million in the September 2011 quarter and $337 million in the June 2011 quarter.

Reserve Bank figures show net new mortgage lending by registered banks grew $1.28 billion in the three months ended March. If that's an accurate proxy for the figures in banks' disclosure statements - and it hasn't been that great a proxy lately, that would mean BNZ accounted for 14% of net new lending in the quarter, although its market share remained steady at 16.2%. BNZ's market share had been increasing in recent quarters.

As in the previous quarter, BNZ's figures suggest much of its mortgage book growth has come from relaxed lending criteria. Of the growth in the quarter, $75 m was from mortgages with LVRs below 80%, $45 million from mortgages with LVRs between 80% and 89% and $59 million from mortgages with LVRs above 90%.

BNZ's net profit for the three months ended March dropped 40% to $63 million, reflecting unrealised losses on financial instruments which also distorted its December quarter profit outcome. Net interest income grew 14.1% to $389 million in the March quarter, up from the 7.2% growth in the December quarter.

Charges against profit for bad loans eased to $27 million in the latest quarter from $56 million in the year-earlier March quarter.

 

« Further evidence OCR won't rise soon as inflation expectations fallASB Bank's mortgage book growths for first in 8 quarters »

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Comments from our readers

On 23 May 2012 at 3:09 pm Amused said:
This reduced mortgage growth at BNZ might have something to do with branches actually having to send loan applications to Credit now. Previously branch staff seemed able to write any old loan themselves. A little bird tells me the auditors are uncovering all sorts of "interesting" things...
On 24 May 2012 at 11:06 pm Skywalker said:
I bank with 3 banks in NZ and as far as I am concerned the BNZ has just streamlined its application process and its rates and service are both really good.
Commenting is closed

 

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

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