Australian-owned Superbank says it is to close its banking operations in New Zealand. However, it has made arrangements for customers to transfer to another bank.
Superbank launched in 2003 as a joint venture between Australia's St George's Bank and supermarket operator Foodstuffs. It was set up as a phone and internet bank which marketed itself in Foodstuffs supermarkets - New World, Pak'N Save and Four Square.
However, Superbank says market conditions have changed over this time and margins in mainstream residential lending in New Zealand have become too competitive. It has sold its mortgage book containing more than 2,000 loans valued around $500 million to GE Money.
An agreement has also been struck with Kiwibank to take on the bank's 25,000 depositors. Customers who don't take up this offer will continue to accrue interest until September 25, when money left in the account will be repaid in full.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- NBR's Rob Hosking with budget analysis. No lolly scramble but sweeteners aplenty
- Grant Thornton tax partner Murray Brewer with his take on the tax package
- NBR’s Calida Smylie talks to CTU policy head Bill Rosenberg in the Budget 2017 lock up
- OMF Financial’s Nigel Brunel discusses the economic implications of the Budget
- MetroGlass CEO Nigel Rigby on the outlook and market share position
- David Seymour gives Gareth Morgan a serve as the latest political party donations are disclosed
- NBR Radio: best of the week ended May 19, with Grant Walker