Kiwi lender trumps Big Four
(23 March 2009 – New Zealand) A New Zealand local bank, Kiwibank, has trumped the subsidiaries of the Big Four Australian banks in fourth quarter lending for the first time in New Zealand.
The New Zealand Herald reported that Kiwibank was the nations biggest lender and also beat out the subsidiaries of the Australian Big Four by lending NZ$871 million extra in the December quarter of 2008.
Kiwibank, has just 3.3 percent of the overall mortgage market, but managed to lend 66 percent of new mortgages in the December quarter.
The amount is an increase of more than 400 percent on the same time last year for the bank, and nearly six times greater than New Zealand’s biggest lender, ANZ National.
During the December quarter in New Zealand, interest rates fell by the fastest rate in NZ history as the Reserve Bank slashed the official cash rate from 8.25 percent in late July to 5 percent in early December. Kiwibank was the most aggressive and fastest to pass on the rate cuts.
Kiwibank’s major competitors in New Zealand are wholly-owned subsidiaries of the big Australian banks, ASB, BNZ, ANZ-National and Westpac.
The Big Four Australian banks have found funding through international sources increasingly expensive, translating into margin difficulty in both Australia and New Zealand.
Kiwibank said that the growth rate wouldn’t last, partly because of its competitors and partly because Kiwibank's owners, NZPost, will have to find more capital to back the lending growth.
Kiwibank chief executive Sam Knowles said after the bank's results that he expected lending to ease because the other banks were now more certain of their funding and were getting back in the market.
Kiwibank, has just 3.3 percent of the overall mortgage market, but managed to lend 66 percent of new mortgages in the December quarter.
The amount is an increase of more than 400 percent on the same time last year for the bank, and nearly six times greater than New Zealand’s biggest lender, ANZ National.
During the December quarter in New Zealand, interest rates fell by the fastest rate in NZ history as the Reserve Bank slashed the official cash rate from 8.25 percent in late July to 5 percent in early December. Kiwibank was the most aggressive and fastest to pass on the rate cuts.
Kiwibank’s major competitors in New Zealand are wholly-owned subsidiaries of the big Australian banks, ASB, BNZ, ANZ-National and Westpac.
The Big Four Australian banks have found funding through international sources increasingly expensive, translating into margin difficulty in both Australia and New Zealand.
Kiwibank said that the growth rate wouldn’t last, partly because of its competitors and partly because Kiwibank's owners, NZPost, will have to find more capital to back the lending growth.
Kiwibank chief executive Sam Knowles said after the bank's results that he expected lending to ease because the other banks were now more certain of their funding and were getting back in the market.
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