Rates round-up: November 26
Westpac cuts term deposit rates; Geneva completes rights issue; Dorchester loss shrinks
Monday, November 26th 2012, 9:52AM
by Niko Kloeten
As competition heats up in the home loan market, savers continue to be punished by falling term deposit rates.
Westpac is the latest bank to cut its deposit rates as banks look to keep funding costs low in order to remain competitive in the mortgage market.
For term Deposits and term PIE funds it has dropped its 12 month rate from 4.30% to 4.20%, its 18-month rate from 4.30% to 4.15%, its two-year rate from 4.35% to 4.20% and its three-year rate from 4.50% to 4.40%.
Westpac’s move came just over a week after ANZ cut its deposit rates for all terms between nine months and three years.
Geneva completes rights issue
Following a $1.2m share placement to Federal Pacific Group (FedPac) in March, NZAX-listed motor vehicle finance company GFNZ Group (Geneva) has raised a further $1.5million in a 1:4 rights issue.
Geneva Managing Director David O’Connell said the $1.2m placement in March and the $1.5m raised under this issue had collectively increased Geneva’s net shareholder funds by 28%.
Under the rights issue Geneva has issued a further 56.2 million ordinary shares, of which 357 small shareholders were allocated 6.6 million and FedPac the remaining 49.6 million shares, raising its total stake in Geneva to 33.7%.
Each of the shareholders (including FedPac) who acquired shares under the rights issue, has also been allocated two options (for every three shares acquired) to subscribe for new shares, at 8c per share within a 30 day period beginning three years after their allocation date.
Dorchester loss shrinks
Dorchester Pacific (DPC) has reported an unaudited net loss after tax of $87,000 for the 6 months to September 30, compared to a $993,000 loss in the same period last year.
The result includes a profit on the buyback of the 2013 notes of $1.14 million and a full write-off of the fair value adjustment amount of $1.17 million remaining on the balance sheet at March 31.
Both finance and insurance subsidiaries traded ahead of forecast for the period.
Dorchester has also completed the purchase of credit management and debt recovery firm EC Credit Control, for which it is paying $18.5 million with about 60% of the purchase consideration in cash and 40% in Dorchester shares.
About $8 million of the $18.5 million will be determined in an earnout arrangement over two years with a final payout based on EC Credit Control earnings achieved over that period.
Chief executive Paul Byrnes said Dorchester expected a profit of at least $1 million for the full year and a net profit after tax of $4 million - $5 million for the next full financial year ending March 31 2014.
Niko Kloeten can be contacted at niko@goodreturns.co.nz
| « Rates round-up: November 19 | Avanti Finance fined $15,000 » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
