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Building societies no shrinking violets

KPMG has survey building societies and the PSIS and warned other lenders not to ignore them.

Monday, December 23rd 2002, 1:16AM

by Jenny Ruth

While residential mortgage lending dominates the lending profile of savings institutions, the seven building societies and the PSIS, their other lending grew much faster in 2002.

Accounting firm KPMG’s survey of these institutions found that total lending assets for the eight institutions jumped $253 million, or 13.4%, to $2.1 billion in the year.

But the proportion of that accounted for by mortgage lending fell 2% to 72% or $1.5 billion.

KPMG banking and finance group chairman Andrew Dinsdale says that reflects the rural base of many of these institutions and the recent rural boom.

"They’re still lending mortgage money, but there’s been a fair amount of push by some of them into agricultural and rural lending, particularly in Southland," Dinsdale says.

Agricultural lending now makes up 14% of savings institutions’ total lending. Lending on commercial real estate also grew a rapid 37% in 2002 and now accounts for 10% of total lending. Personal services accounts for the other 4% of lending.

Southland Building Society still dominates the industry, its assets accounting for $1.14 billion, up from $1.02 billion the previous year, of the sector’s $2.59 billion. It is followed somewhat distantly by the PSIS whose assets grew from $559.3 million to $605.8 million in the year and by the Southern Cross Building Society whose assets rose from $349.7 million to $361.3 million.

The smallest institution, the Wairarapa Building Society, saw its assets grow 3.7% to $69 million.

Dinsdale notes that although these institutions tend to keep a low profile, "don’t be fooled however. These are not shrinking violets."

Several are no longer content with their home patch and are revamping their products and services in a bid to take on the competition, he says.

Overall, the sector’s net profit rose 15.8% to $18.6 million in the year following a 4% improvement in 2001, but the Hastings, Southland and Wairarapa building societies all suffered a slight fall in profit while the Nelson and Southern Cross societies achieved more than 60% increases. The Nelson society’s net assets jumped 36% to $86.9 million.

« Kiwibank to use brokersHousing market continues to bubble »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 ▼6.79 ▼6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 ▼7.29 ▼7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 ▼7.39 ▼7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 ▼6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 14 March 2024 9:32am

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