About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 19th, 3:05PM
Mortgage Rates Daily Commentary
Thursday 18 December 2014  Add your comment

The NZ Property Investor Magazine's annual survey is ready to hear from you. Tell us how your property investing is going, where you think the housing market is headed next year and more. By completing the survey you will get a free copy of the mag and go into a draw for one of several prizes.

If you own rental property please take a moment to complete the survey. Click here to continue

Thanks

rss
Latest Headlines

LVR restrictions a significant change: ASB

Loan-to-value speed limits, if implemented as the Reserve Bank has indicated, would present quite a step change for any bank, says ASB chief executive Barbara Chapman.

Wednesday, August 14th 2013, 4:38PM

ASB has announced a record net profit after tax (NPAT) of $705 million for the year ended June 30.  The cash NPAT was $699 million, 12% up on the previous year.

ASB grew lending in the year to June by $4.724 billion, or 9%, to $57.726 billion, and deposits by $2.314 billion, or 6%, to $41.289 billion.

Profit was boosted by an interest rate margin lift from 2.16% to 2.25%.

But Chapman said that was not an indication that customers were not pushing as hard as they had previously for cheaper interest rates. “It’s still very competitive.”

She said changes to banks’ core funding ratios had eroded margins, which had since returned to normal. The cost of liquid assets had also dropped. But she said more people were now taking fixed interest rates, which had less of a margin in them for the bank.

“The trend is back to fixing. Customers think at some stage interest rates must rise. We think that’s probably not until the first quarter of next year but customers are being cautious.”

She said the bank was waiting to see what the final loan-to-value speed limit would be, but the 12% the Reserve Bank had indicated would be a significant change.

ASB’s lending growth had been partly driven by a renewed focus on customer service and  good performance from Sovereign home loans, offered through a third-party network.

The bank also reported 22% growth in its wealth and insurance businesses.

Chapman said the integrated wealth and insurance team was focussed on developing simple, innovative products for customers.  “We have further developed our private wealth offering and consolidated our position as New Zealand’s largest bancassurance provider.”

She said insurance was often a cross-sell across other products, so when there was strong growth in lending there was also growth in other products. Video phones in branches that allowed customers to communicate with insurance specialists had worked well, she said.

Although ASB has the Sovereign channel with advisers, she said the bank would continue to take a proprietary approach to insurance distribution. “The thing about insurance is that it’s often linked to other things, to bring the conversation together is beneficial.”

« LVR restrictions at odds with Government: EaqubCycle 'may be only half-way through' »

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
AMP Home Loans 7.24 5.69 6.19 6.55
AMP Home Loans $200k+ 7.14 5.59 6.09 6.45
AMP Home Loans LVR <80% - - 5.75 6.09
ANZ 6.74 6.09 6.19 6.39
ANZ Special - 5.59 5.75 5.99
ASB Bank 6.75 5.99 6.19 6.39
ASB Bank Special - 5.59 5.75 5.85
BankDirect 6.75 5.99 6.19 6.39
BankDirect Special - 5.59 5.75 5.85
BNZ - Classic - 5.69 5.75 5.99
BNZ - GlobalPlus 6.74 5.89 6.19 6.29
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.89 6.19 6.29
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 6.05 6.20 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
Lender Flt 1yr 2yr 3yr
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.74 5.99
HBS Special - 5.59 5.49 5.69
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.70 6.00 6.30 -
Housing NZ Corp 6.74 ▼5.70 ▼6.09 ▼6.29
HSBC Premier 6.84 ▼5.45 ▼5.65 5.99
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.69 6.19 6.55
Lender Flt 1yr 2yr 3yr
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset 6.55 - - -
Kiwibank LVR > 80% - - 5.75 5.89
Liberty - - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
Resimac 6.59 6.10 6.28 6.43
SBS Bank 6.65 5.69 5.74 5.99
SBS Bank Special - 5.59 5.49 5.69
Lender Flt 1yr 2yr 3yr
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 5.99 6.19 6.39
Sovereign Special - 5.59 5.75 5.85
The Co-operative Bank 6.70 5.69 5.75 5.99
TSB Bank 6.74 5.95 6.19 6.30
TSB Special - - 5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - - 5.99
Median 6.70 5.97 6.19 6.29

Last updated: 15 December 2014 11:07am

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
Find a Mortgage Broker

Add your company

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