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Treasury hires Goldman Sachs to run ruler over KiwiBank

Treasury hired Goldman Sachs to run the ruler over state-owned KiwiBank and its future capital needs.

A spokesman for Treasury says the report has been completed but will not be made public because the details are commercially sensitive.

Confirmation of the report comes a day after KiwiBank and parent New Zealand Post posted their first-half results, which show banking propped up the barely profitable postal service, accounting for about 83 percent of the group's earnings.

KiwiBank's net profit rose 53 percent to $58 million as interest income gained 14 percent to $140 million.

Kiwibank chief executive Paul Brock yesterday told that the lender was not yet generating enough profit internally to cover its ongoing capital needs.

The website says funding could come from a sale of debt or equity, with one possibility being the sale of a stake via a sharemarket float.


Comments and questions

Good to see Treasury supporting NZ advisors ! The officials are Just wowed by international names.

How do you know it is not the local unit of Goldman Sachs (run by Kiwis) that was hired??

Here we going. again...More Asset Sales....BNZ revisited...

Who are these Goldman Sach people anyway? And who really are they working for?

See my reply to #1 Tumbler above.

Pity Treasury didnt employ Goldman Sachs to run a rule over Treasury to find out has there ever been a time, when they got any forecasts or financial advice to the Government ,past or present correct.Seems on face value they should be dumped, and perhaps Goldman Sachs should be installed in their place.

The Treasury releases regular reviews of its forecasting performance and they are available on its website:
In the latest review, when measured against the performance of 12 other forecasters, the Treasury was ranked the best GDP growth forecaster and second-best CPI inflation forecaster over the period 2000-2010.

Anyone who has done finance 101 coud tell you Kiwi needs more capital. Pay me the 300k and I would tell you...likely 3 week fee of that mob.

The same Goldman Sachs that was "running rulers" over the Greece balance sheet when they were applying for Euro entry?

Anonymous, Greece qualified for the euro in 2000 and adopted the it in 2001 with debt to GDP around 100%. Under the socialist government in that country debt to GDP went from 110% to close on 150% in two years, 2009-11.
Hardly an issue with Goldman's work pre-2000! Whatever axe you have to grind, best you substantiate your facts before making inferences.

Happy to oblige...

btw, I wasn't implying, you easily happened to infer ... which probably tells you all you need to know about the reputation of brand Goldman Sachs. I would suggest that NZ Treasury should tread carefully when parading about ripe plums like Kiwibank before predatory investment banks that have history.

Then NAAAYT, we are talking about two different things. You are talking about Goldmans swaps at a fictitious historical rate (whilst Greece were in the Euro) that Greece executed and which enabled it to remain within the confines of the Maastricht treaty.

@Lindsay "the local unit of Goldman Sachs"

You've got to be kidding, right?

Yes, indeed, LF was of course referring to the benign, cuddly, local version of GS (motto - fiercely independent, we will do right by you NZ) in contrast to the brutish, vampire squid related parent company with its notoriously self-interested modus operandi.

Probably not..

May be a better investment that another "tax grabbing" energy company.

Greek Debt & Goldman
"Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit."