tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, August 3rd, 6:58PM

Mortgages

Mortgage Rates Daily Commentary
Friday 30 July 2021  Add your comment
FSCL case highlights clawback danger

A case study posted by FSCL has highlighted the potential risks with clawback clauses. A mortgage adviser has been forced to drop their request for a commission clawback following a dispute: [READ ON]

rss
Latest Headlines

Kiwibank's mortgage growth momentum slows; need $200m in fresh capital

Kiwibank's mortgage book continued to grow faster than its market share in the June quarter but its momentum continues to slow.

Wednesday, August 22nd 2012, 3:41PM

by Jenny Ruth

That's despite the bank's special promotions, including its 4.99% one-year fixed "special," which it said garnered significantly more than $200 million in new business in May.

In releasing the bank's results, chief executive Paul Brock also confirmed Kiwibank will need about $200 million of fresh capital to meet the Reserve Bank's new capital adequacy requirements.

The exact amount will depend on the new rules and the timeline will be staggered over the next three or four years, Brock says.

Clearly, some of that will need to come from its parent, New Zealand Post, or the government: "I don't think there will be enough retained earnings to make up all of it," Brock says.

Kiwibank made an $18 million net profit in the three months ended June, up from $6 million in the same three months last year, taking annual net profit to a record $79 million compared with $21 million last year.

Kiwibank's June quarter disclosure statement shows its mortgage book grew by $198 million to $11.63 billion in the three months, down from the $225 million growth in the March quarter.

It's Kiwibank's smallest quarterly increase since the December quarter of 2010 when its book grew by $194 million.

In the year ended June, Kiwibank's mortgage book grew by $1 billion, just a smidgeon more than the $0.97 billion growth the previous year.

Assuming Reserve Bank data will prove a reasonable proxy for the mortgage data shown in banks' disclosure statements, that means Kiwibank accounted for 12.1% of mortgages written by registered banks in the three months ended June, down from its 17.6% share in the March quarter.

However, both quarters' growth is ahead of its market share, 6.72% at June 30, 6.67% at March 31, and 6.31% at June 30, 2011.

Brock says while Kiwibank is getting significant front-end growth, net growth is less because customers are tending to repay debt faster than previously and a number of Christchurch customers have received insurance payouts and repaid their mortgages. Presumably, at some stage, those customers will take out new mortgages.

The bulk of the latest quarter's growth, $157 million, came from mortgages with loan-to-valuation ratios (LVRs) below 80% and a further $77 million came from those with LVRs between 80% and 90%. Mortgages with LVRs above 90% shrank by $36 million.

 

« Businesses and households expect subdued inflationBNZ's mortgage book growth losing momentum, profit jumps »

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
AIA 4.55 2.55 2.95 3.29
ANZ 4.44 3.10 3.50 3.84
ANZ Blueprint to Build 1.68 - - -
ANZ Special - 2.50 2.90 3.24
ASB Back My Build 1.79 - - -
ASB Bank 4.45 2.55 2.95 3.29
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.55 2.95 3.25
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.55 3.15 3.22 3.85
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 1.95 1.85 2.35 2.45
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 ▲2.29 ▲2.69 ▲2.99
Kainga Ora 4.43 2.67 2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.75 3.34 3.34 4.14
Kiwibank - Offset 3.75 - - -
Kiwibank Special 3.75 2.49 2.49 3.29
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 ▲2.89 ▲3.29 ▲3.49
SBS Bank Special - ▲2.39 ▲2.79 ▲2.99
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.29 - -
The Co-operative Bank - Owner Occ 4.40 2.49 2.89 3.19
The Co-operative Bank - Standard 4.40 2.99 3.39 3.69
TSB Bank 5.34 3.30 3.69 4.04
TSB Special 4.54 2.50 2.89 3.24
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.59 3.15 3.49 3.89
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.89 3.29
Median 4.54 2.78 2.99 3.29

Last updated: 2 August 2021 9:09am

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

Also compare rates to OCR
Find a Mortgage Broker

Add your company

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