New owners for Wizard?
UPDATED: General Electric is considering selling or changing the model of its franchised Wizard Home Loan operation in New Zealand.
Wednesday, May 28th 2008, 8:40AM
The proposals, which have been confirmed by Wizard, relate just to the home loans business in New Zealand and does not impact on the wholesale funding Wizard's parent provides to many non-bank lenders.
Wizard has around 30 branches in New Zealand, which is down from its high of 45.
It is understood Wizard's home loan book is larger than TSB Bank's and about half the size of Kiwibank.
Its best year was 2006 when it wrote around $750 million of loans and in the following year the figure was $600 million.
The decision to look at different structures is driven by a number of factors including competition and the cost of money. Also it is understood the decision is based more around Wizard in Australia than New Zealand.
Reports suggest that Wizard's founder and chairman, Mark Bouris, may try to buy back the company.
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