tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 29th, 9:17AM

Mortgages

Mortgage Rates Daily Commentary
Thursday 28 November 2024  Add your comment
Sizeable OCR cut expected in Feb; Banks rush to cut rates after RBNZ'S decision yesterday

Another 0.50% drop in the OCR is expected from the Reserve Bank in February. [READ ON]

The Reserve Bank has cut its official cash rate (OCR) to 4.25%, in line with most economists' expectations, and says it's likely to cut further next year. ASB Bank and Kiwibank immediately published cuts in their lending and deposit rates while Bank of New Zealand swiftly followed. [See here]

rss
Latest Headlines

BNZ banks on brokers

BNZ has produced a “very strong” result in the six months to March 31, with net profit up almost 28% to $502 million for the period. Chief executive Anthony Healy talks to TMM Online about BNZ's plans to return to the broker market after a 12-year absence.

Thursday, May 7th 2015, 5:13PM

The bank hasn’t grown market share across its home loan and deposit books but has managed to increase income.

BNZ chief executive Anthony Healy said the “very strong result is a result of our focus on the core franchise.”

He said there has been good and careful cost management which has seen the cost to income ratio fall from 40.2% to 39.4%

“The cost to income ratio is in a good space,” he said.

BNZ’s net interest margin was up from 2.34% in September to 2.41% in this period even though more customers had moved to fixed rate home loans which had lower margins.

Overall its lending margin had come down 13 basis points because of competition from other banks, but that had been offset by by funding benefits that includes rolling off some of the expensive GFC funding and repricing some of the lower quality deposits.

“Our earnings on capital have improved that’s probably the single biggest thing that’s driving the margin improvement,” chief financial officer Adrienne Duarte said.

She said in a rising interest rate environment the bank earns more on its capital, and BNZ had “picked the right time to move from two year to three year investment rate.”

Total housing lending rose from $30.6 billion to $31.4 billion however its share of the market remained flat at 15.8%.

Healy said that is a good result as the bank was only competing in 75% of the market. As it moved into the broker space he expected to see the bank’s market share increase.

However he would not put numbers around how much it is forecast to grow.

Healy said he expects BNZ’s recent re-entry into the mortgage broker market to boost the bank’s home loan performance, and to position the bank strongly in the high-growth Auckland market.

“We know that 25% of customers choose to use a broker, so our decision made strategic and commercial sense. It extends our reach and will enhance BNZ’s capacity to help more New Zealanders to buy their own home.”

He said BNZ was “skewing investment to Auckland where there’s more growth and we are a bit under our natural share in Auckland.”

Around 40% of BNZ’s mortgage portfolio was in Auckland and Christchurch comes in at 15%.

The portion of lending to the over 80% LVR market has shrunk significantly from $5,049 million in September 13 to $3,403 million which represents 10.5% of its overall book.

Tags: Anthony Healy BNZ

« Chinese banks creeping into lending marketMore banks call for OCR cuts »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build ▼4.94 - - -
AIA - Go Home Loans ▼7.49 5.99 5.69 5.69
ANZ ▼7.39 ▼6.39 ▼6.19 ▼6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼5.79 ▼5.59 ▼5.59
ASB Bank ▼7.39 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 ▼7.54 - - -
BNZ - Rapid Repay ▼7.54 - - -
BNZ - Std ▼7.44 5.99 5.69 5.69
BNZ - TotalMoney ▼7.54 - - -
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 ▼6.95 5.99 5.75 5.69
Co-operative Bank - Standard ▼6.95 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 ▼6.99 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 ▼6.65 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 ▼7.25 6.89 6.59 6.49
Kiwibank - Offset ▼7.25 - - -
Kiwibank Special ▼7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society ▼7.94 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank ▼7.49 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 ▼4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank ▼8.19 6.49 6.49 6.49
TSB Special ▼7.39 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 ▼7.39 ▼6.39 ▼6.09 ▼6.19
Westpac Choices Everyday ▼7.49 - - -
Westpac Offset ▼7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - ▼5.79 ▼5.49 ▼5.59
Median 7.49 5.99 5.79 5.69

Last updated: 29 November 2024 9:20am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com