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Kiwibank's mortgage book grows fast but momentum slips

The government-owned Kiwibank's mortgage book continued to grow much faster than its market share in the March quarter but its momentum appears to be slowing.

Thursday, May 31st 2012, 4:53PM

by Jenny Ruth

However, the bank's 4.99% one-year fixed "special," which garnered significantly more than $200 million in new business between April 26 and May 31, is likely to boost its June quarter figures.

The loan-to-valuation ratio (LVR) table in Kiwibank's March quarter disclosure statement shows its mortgage book grew by $225 million to $11.43 billion in the three months, down from the $260 million growth in the December quarter.

It's also Kiwibank's smallest quarterly increase since the December quarter of 2010 when its book grew by $194 million.

In the year ended March, Kiwibank's mortgage book grew $1.1 billion, slightly more than the $1.03 billion growth the previous year.

Assuming Reserve Bank data will prove a reasonable proxy for the mortgage data shown in banks' disclosure statements, that means Kiwibank accounted for 17.6% of mortgages written by registered banks in the three months ended March and its share of market rose to 6.66% from 6.58% in December and 6.17% in March last year.

It doesn't appear Kiwibank's growth is due to any relaxation in credit standards: the part of its books with LVRs of 80% or less is where most of the growth came from, $227 million, while mortgages with LVRs of 90% or more shrank by $37 million.

Mortgages with LVRs of 80% or less account for 82.2% of Kiwibank's mortgage book while loans with 90% or more LVRs account for 3.4%.

Kiwibank's net profit for the quarter jumped to $23 million from just $1 million in the same quarter last year which had been hit by a blowout in charges for bad loans due to Christchurch's February 22, 2011 earthquake.

Charges for bad loans in the latest quarter fell to $9 million compared with $26 million in the year-earlier quarter. A 25% jump in net interest income to $65 million also boosted net profit in the March quarter.

 

« NZF Group posts $16.2 m annual lossReserve Bank data show mortgage cuts stimulating activity »

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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 ▼8.60 6.75 6.40 -
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 5.95 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 6.49 6.49 6.49
TSB Special 7.89 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.10 6.05 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 6.02 5.79 5.69

Last updated: 20 November 2024 9:45am

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