Bank of New Zealand’s anti-broker campaign is having a significant impact on banking industry profit margins across the board, says Brian Hayr, senior manager of third party origination at National Bank.
Wednesday, May 26th 2004, 7:29AM
by The Landlord
BNZ’s campaign is heavily focused on its two-year fixed homeloan rate at 6.89% and uses the slogan: "We’ve cut out brokers to give you a great home loan deal."
The other four major banks’ published two-year fixed rates are between 7.3% and 7.4%.
"It’s stripping out major value. The margins we’re seeing now are some of the toughest we’ve seen," Hayr told the Plan New Zealand annual conference earlier this month.
It is a very long time since a major bank has so aggressively tried to undercut its competitors and the other banks are being forced to cut their profit margins too, he says.
