News Round Up

The latest issue of the New Zealand Mortgage Mag is now available. In the February issue we look at the increasing influence of the big broking groups, why more brokers are joining the big groupings and what it means.

Also in the mag is the latest interest rate survey, along with a report on where rates are heading, a new legal column which examines the Privacy Act, interviews with three winners in the Mortgage Broker of the Year Awards and news from here and abroad.

ASB Bank says its "excellent first half performance" was achieved from gains across a broad range of initiatives and product areas, reflecting the Bank's now much broader provision of diversified financial services.

In the past 12 months the bank has enjoyed strong growth in residential housing lending and is meeting its objective of above market growth in this key area. Retail funding growth has also performed ahead of target for the period.

Total bank operating income increased by 17.7% to $415.4 million in the six months, generating a net surplus before tax of $201.5 million, up 29.1% on the corresponding period.

Of this income, 27.7% or $114.9 million, came from non-interest margin sources including insurance, funds management, sharebroking and card services.

Home mortgage lending for the six months at $2.72 billion was a record in any six month period, and was up 31.2% on that for the corresponding period.

ASB Bank's market share of funds under management is close to 6%, a 1.2% improvement in 12 months with total funds under management exceeding $1.1billion. Throughout the period ASB Bank's share of fund inflows remained consistently high compared to all fund managers.

The High Court has ordered that money collected from the membership fees of Alpha Club New Zealand Limited be redistributed to some members after deeming the scheme to be pyramid selling.

The High Court ruling followed a Commerce Commission investigation into Alpha Club, a scheme entitling members to discounts for travel and accommodation and the ability to earn commissions by recruiting new members.

The court found that overall there were no real financial benefits available to members and the primary objective of the scheme was to earn financial rewards through the sale of memberships.