Latest news with #WestpacNZ
Time of India
28-05-2025
- Business
- Time of India
Westpac NZ slashes home loan rates after OCR cut, 3-year fixed now just 4.95%, check full list
Westpac New Zealand has quickly responded to the Reserve Bank of New Zealand's (RBNZ) recent decision to lower the Official Cash Rate (OCR) by 25 basis points to 3.25%, announcing reductions in lending and deposit rates. Effective Thursday, May 29, 2025, Westpac NZ is offering special fixed home loan rates of 4.95% per annum across one, two, and three-year terms. This move positions Westpac's three-year rate as the lowest among the five major banks in New Zealand. Additionally, the bank has reduced its six-month fixed special rate to 5.49% per annum. Westpac mortgage rates (variable) have also been adjusted downward by 0.15% annually. This change means that since July of the previous year, customer variable rates have decreased by over 2.00% per annum. Furthermore, most variable business lending rates have been reduced in line with the 0.25% OCR decrease. Live Events According to advertised rates as of 3 PM on May 28, Westpac's new special rate of 4.95% per annum is the lowest three-year rate among the five largest banks. This rate is significantly lower than the average of 5.40% per annum over the past ten years. Savers are closely monitoring the rate decline, and support for them remains a priority, as per Westpac. That's why the 0.25% OCR reduction has not been applied to the Notice Saver product, which continues to offer a rate of 3.10% per annum. Additionally, Westpac is decreasing its mortgage serviceability rate from 7.00% to 6.85%. Sarah Hearn, Westpac NZ's General Manager of Product, Sustainability, and Marketing, said the bank's commitment is to providing value to customers in a competitive environment. She stated, "We'll continue to look for opportunities to pass on interest rate reductions to ensure we're providing customers with good value." Hearn also acknowledged many New Zealanders' financial challenges, encouraging customers to engage with the bank if they have concerns about their finances. The RBNZ's decision to lower the OCR to 3.25% marks the second consecutive reduction, bringing the rate to its lowest level since September 2022. The central bank cited a recovering economy and inflation within the target range as reasons for the cut. However, it also noted ongoing challenges, including global economic uncertainties and the impact of tariffs, which could affect future growth and inflation. Fixed home loan rates (Special, effective from May 29) Term New Rate (p.a.) Change 6 months 5.49% p.a. -0.10% 1 year 4.95% p.a. -0.04% 18 months 4.95% p.a. -0.04% 2 years 4.95% p.a. -0.04% 3 years 4.95% p.a. -0.24% 4 years 5.39% p.a. No Change 5 years 5.39% p.a. No Change Fixed home loan rates (Standard, effective 29 May 2025) Term New Rate (p.a.) Change 6 months 6.09% p.a. -0.10% 1 year 5.55% p.a. -0.04% 18 months 5.55% p.a. -0.04% 2 years 5.55% p.a. -0.04% 3 years 5.55% p.a. -0.24% 4 years 5.99% p.a. No Change 5 years 5.99% p.a. No Change Variable home loan rates (effective from June 3, 2025, for new customers and on June 5, 2025, for existing customers) Term New Rate (p.a.) Change Choices Floating 6.59% p.a. -0.15% Choices Offset 6.59% p.a. -0.15% Choices Everyday 6.69% p.a. -0.15%
Scoop
15-05-2025
- Business
- Scoop
Westpac NZ Supports Open Banking Rollout By Not Charging Fintechs For Standard API Calls
Press Release – Westpac New Zealand Allowing fintechs to integrate into our open banking APIs for no cost should create a more affordable business model for them, and ultimately speed up access for Kiwi consumers to a wide range of affordable open banking experiences, Westpac NZ Chief … Westpac NZ is supporting the rollout of open banking in New Zealand by making standard API requests through its systems free for accredited third-party providers, for at least the first 12 months. 'Allowing fintechs to integrate into our open banking APIs for no cost should create a more affordable business model for them, and ultimately speed up access for Kiwi consumers to a wide range of affordable open banking experiences,' Westpac NZ Chief Information Officer Russell Jones says. 'As an early participant in Online EFTPOS from 2019, we understand the value of providing consumers with more options for making payments and managing their money in a safe and secure way. 'We already have agreements in place with a number of fintechs, and we've notified them of their reduced pricing, which we'll review in 12 months' time as the open banking landscape evolves. We expect to enter into agreements with a number of new fintechs in the near future. 'We're already facilitating thousands of open banking payments a month for Kiwi consumers, and we expect that to keep growing steadily as trust and awareness of open banking grows.' Mr Jones says an industry-wide collaborative approach is needed to make open banking a success. 'We're keen to ensure New Zealand's open banking ecosystem is viable in the long term and we hope to see it expand to include all financial services participants. 'We look forward to MBIE releasing the central accreditation model, which will further streamline the onboarding experience by removing the need for fintechs to enter into multiple bilateral agreements with open banking providers. 'Consumer confidence is also key to the successful uptake of open banking, and we continue to work with the industry on future API standards that are safe and secure, as well as providing a seamless and efficient partnering process with third parties that creates trust in the system. 'From an operational perspective, we're on track to meet the 30 May deadline for Payments NZ's API Centre Payment Initiation implementation plan version 2.3. This will give customers increased functionality and choice for making both one-off and regular ongoing payments.' More information about Westpac's open banking work can be found on its website, including a list of current integrated third-party providers. Earlier this month, the government released guidance that bank charges for open banking must not exceed 1 cent per successful API call for account information and 5 cents per transaction for payments.
Scoop
15-05-2025
- Business
- Scoop
Westpac NZ Supports Open Banking Rollout By Not Charging Fintechs For Standard API Calls
Westpac NZ is supporting the rollout of open banking in New Zealand by making standard API requests through its systems free for accredited third-party providers, for at least the first 12 months. 'Allowing fintechs to integrate into our open banking APIs for no cost should create a more affordable business model for them, and ultimately speed up access for Kiwi consumers to a wide range of affordable open banking experiences,' Westpac NZ Chief Information Officer Russell Jones says. 'As an early participant in Online EFTPOS from 2019, we understand the value of providing consumers with more options for making payments and managing their money in a safe and secure way. 'We already have agreements in place with a number of fintechs, and we've notified them of their reduced pricing, which we'll review in 12 months' time as the open banking landscape evolves. We expect to enter into agreements with a number of new fintechs in the near future. 'We're already facilitating thousands of open banking payments a month for Kiwi consumers, and we expect that to keep growing steadily as trust and awareness of open banking grows.' Mr Jones says an industry-wide collaborative approach is needed to make open banking a success. 'We're keen to ensure New Zealand's open banking ecosystem is viable in the long term and we hope to see it expand to include all financial services participants. 'We look forward to MBIE releasing the central accreditation model, which will further streamline the onboarding experience by removing the need for fintechs to enter into multiple bilateral agreements with open banking providers. 'Consumer confidence is also key to the successful uptake of open banking, and we continue to work with the industry on future API standards that are safe and secure, as well as providing a seamless and efficient partnering process with third parties that creates trust in the system. 'From an operational perspective, we're on track to meet the 30 May deadline for Payments NZ's API Centre Payment Initiation implementation plan version 2.3. This will give customers increased functionality and choice for making both one-off and regular ongoing payments.' More information about Westpac's open banking work can be found on its website, including a list of current integrated third-party providers. Earlier this month, the government released guidance that bank charges for open banking must not exceed 1 cent per successful API call for account information and 5 cents per transaction for payments.
Scoop
05-05-2025
- Business
- Scoop
Westpac NZ Posts Resilient Half-year Result
Press Release – Westpac New Zealand Westpacs lending to corporate and small business segments grew faster than the market for the half, building on strong growth in the previous financial year. Westpac New Zealand (Westpac NZ) [i] has reported a net profit of $525m for the six months ended 31 March 2025, positioning it well to support New Zealand's economic recovery. Net profit was up 10% on the prior corresponding period, with operating income up 8%, offset by a 6% increase in expenses as the bank invested strongly in new technology and digital capability. However, net profit was down 9% compared to the six months ended 30 September 2024, reflecting higher impairments and operating costs than the previous six months. Home lending grew 3% and business lending grew 1%, with deposits up 3% on the prior corresponding period in what continues to be a highly competitive environment. 'We're the smallest of the four largest banks. We're not satisfied with that position and we are competing hard to grow,' Westpac NZ Chief Executive Catherine McGrath says. 'That means offering points of difference, through competitive pricing and innovative products and services, while also helping drive action on issues that matter to New Zealanders like fighting fraud and scams, getting more families into their own homes and boosting financial inclusion. 'While the global economic outlook is mixed, this financial result positions us well to support the economy's growth over the second half of the year.' Growth mindset Westpac's lending to corporate and small business segments grew faster than the market for the half, building on strong growth in the previous financial year. 'We need small and medium businesses thriving to help build economic momentum and we have a real focus to support them. We've cut some variable business lending rates by 2.10% since last July – more than the 2.00% the OCR has fallen in that time – to encourage them to invest and grow,' Ms McGrath says. 'We estimate farmers and growers are saving an average of around $46,500 a year each in interest costs due to interest rate falls since last July. Our Agri bankers increased their proactive calls and outreach by 12% on the previous year, to help them manage issues like on-farm inflation and plan for the future. 'We helped first home buyers purchase 3,463 new homes over the last six months – a 12% increase on the same time last year – and we're also driving the growth of social and affordable housing by providing $334m of new lending to help more families into affordable homes.' Competitive products and services With uncertainty in the economy and living costs still elevated, Ms McGrath says customers are looking for help managing their money, as well as products and banking experiences that make their lives easier. 'In January we launched a special 11.95% personal loan debt consolidation campaign [ii], helping customers manage more than $14m of debt more effectively at a time of year when financial strain is often high,' Ms McGrath says. 'As branch usage declines, we're exploring other ways to meet community needs. This month we're launching our first mobile community banker service – a van that will travel between Invercargill, Te Anau and Winton to help Southlanders do their banking [iii]. We're also continuing our community banker model in Wairoa following a successful trial there.' In April the bank began piloting a new 'basic' bank account [iv], which was one of the recommendations of the Commerce Commission's Market Study into Personal Banking Services. 'The basic bank account will be a transactional bank account with simplified functionality, helping people who otherwise may not have been eligible for a standard bank account to receive work or benefit payments, pay bills or do many other day-to-day tasks we take for granted. 'A bank account is essentially a passport to the economy and should be available to as many people as possible. We're keen to work with other financial providers on basic bank accounts to reduce exclusion across the industry.' Taking the fight to financial criminals Fraud and scams continue to be a top concern for customers. Westpac's ongoing investment to help keep customers safe through new technology such as biometric software has led to an 11% increase in fraud prevention compared to the same time last year, helping reduce customer losses to fraud and scams by 14%. For every $10 of known fraud and scams that touched Westpac's systems in the last six months, the bank prevented, recovered or reimbursed $9. In March Westpac rolled out digital credit and debit cards for customers with dynamic security codes [v], reducing the chance of fraudulent activity on their card if their details were stolen. 'We're the first New Zealand bank to offer a dynamic security code feature alongside instant issuance for debit cards,' Ms McGrath says. 'That means a customer who gets a new or replacement debit card can start spending online straight away, and they can spend with confidence knowing we're working round the clock to keep their money safe. 'We're making progress as an industry, and are pleased to see other parts of the ecosystem stepping up, such as Google rolling out financial services verification to crack down on fake investment ads. However, we're concerned that other social media and tech companies' continued lack of action is putting New Zealanders' money at risk. 'There's a lot more they could be doing to clamp down on financial crime, such as rolling out their own financial services verification process, as well as cracking down on fake profiles and regulating social media marketplaces to protect buyers and sellers. 'We're investing to improve our systems and processes all the time, but banks are only the 'offramp' to a successful scam. Social media and online platforms are a major 'onramp' and we want to work with them to stop fraud and scams at their source.' Key financials (All comparisons are for the 6 months ended 31 March 2025 versus the same period last year) Pre-provision profit of $763 million, up 11% (up 10% excluding Notable Items). Net profit of $525 million, up 10% (up 9% excluding Notable Items). Net operating income of $1,497 million, up 8% (up 8% excluding Notable Items). Operating expenses of $734 million, up 6% (up 6% excluding Notable Items). Net impairment charge of $33 million, compared with an impairment charge of $23 million in the previous period. Net interest margin 2.26%, up 15 basis points excluding Notable Items. Home lending up 3% to $69.5 billion, Business lending up 1% to $33.0 billion, Deposits up 3% to $80.9 billion. A mixed economic picture Despite mixed economic indicators and uncertainty around the impact of tariffs on global trade, Westpac is predicting New Zealand's economy to grow 2.6% this year and 3% in 2026 – albeit with downside risks. 'Although the geopolitical outlook and global trade environment continues to change week to week, our economists currently think the impact of tariffs to New Zealand's economy will be manageable,' Ms McGrath says. 'Domestically, the picture is mixed. GDP growth in the December 2024 quarter was stronger than expected and many higher-frequency indicators have shown improvement, such as business confidence and housing market and manufacturing activity. 'But consumer spending has faltered recently. Economic growth is not yet broad-based, with urban areas lagging rural areas that have benefited from improving tourism and strong commodity prices, particularly in the dairy and meat sectors. 'Households have seen volatility in their KiwiSaver balances in recent weeks, which may be unsettling, but should serve as a reminder to think long term and ensure their investment goals have them on track for the retirement they want. 'While it's hard to make any firm predictions right now, uncertainty is likely to persist over the coming months. We'll continue to stand alongside our customers to help them weather the challenges and take advantage of the opportunities ahead.' Notes: [i] Westpac NZ is a segment of the Westpac Banking Corporation Group (Westpac Group). Westpac NZ includes, but is not limited to, Westpac New Zealand Limited, BT Funds Management (NZ) Limited and WBC (New Zealand branch). The financial results of the Westpac New Zealand Limited Banking Group (WNZL Banking Group) will be available in the Westpac New Zealand Limited Disclosure Statement, with a reconciliation between the two results also provided in the Westpac NZ Summary Financials section of this media release.
Scoop
04-05-2025
- Business
- Scoop
Westpac NZ Posts Resilient Half-year Result
Westpac New Zealand (Westpac NZ)[i] has reported a net profit of $525m for the six months ended 31 March 2025, positioning it well to support New Zealand's economic recovery. Net profit was up 10% on the prior corresponding period, with operating income up 8%, offset by a 6% increase in expenses as the bank invested strongly in new technology and digital capability. However, net profit was down 9% compared to the six months ended 30 September 2024, reflecting higher impairments and operating costs than the previous six months. Home lending grew 3% and business lending grew 1%, with deposits up 3% on the prior corresponding period in what continues to be a highly competitive environment. 'We're the smallest of the four largest banks. We're not satisfied with that position and we are competing hard to grow,' Westpac NZ Chief Executive Catherine McGrath says. 'That means offering points of difference, through competitive pricing and innovative products and services, while also helping drive action on issues that matter to New Zealanders like fighting fraud and scams, getting more families into their own homes and boosting financial inclusion. 'While the global economic outlook is mixed, this financial result positions us well to support the economy's growth over the second half of the year.' Growth mindset Westpac's lending to corporate and small business segments grew faster than the market for the half, building on strong growth in the previous financial year. 'We need small and medium businesses thriving to help build economic momentum and we have a real focus to support them. We've cut some variable business lending rates by 2.10% since last July – more than the 2.00% the OCR has fallen in that time – to encourage them to invest and grow,' Ms McGrath says. 'We estimate farmers and growers are saving an average of around $46,500 a year each in interest costs due to interest rate falls since last July. Our Agri bankers increased their proactive calls and outreach by 12% on the previous year, to help them manage issues like on-farm inflation and plan for the future. 'We helped first home buyers purchase 3,463 new homes over the last six months – a 12% increase on the same time last year - and we're also driving the growth of social and affordable housing by providing $334m of new lending to help more families into affordable homes.' Competitive products and services With uncertainty in the economy and living costs still elevated, Ms McGrath says customers are looking for help managing their money, as well as products and banking experiences that make their lives easier. 'In January we launched a special 11.95% personal loan debt consolidation campaign[ii], helping customers manage more than $14m of debt more effectively at a time of year when financial strain is often high,' Ms McGrath says. 'As branch usage declines, we're exploring other ways to meet community needs. This month we're launching our first mobile community banker service – a van that will travel between Invercargill, Te Anau and Winton to help Southlanders do their banking[iii]. We're also continuing our community banker model in Wairoa following a successful trial there.' In April the bank began piloting a new 'basic' bank account[iv], which was one of the recommendations of the Commerce Commission's Market Study into Personal Banking Services. 'The basic bank account will be a transactional bank account with simplified functionality, helping people who otherwise may not have been eligible for a standard bank account to receive work or benefit payments, pay bills or do many other day-to-day tasks we take for granted. 'A bank account is essentially a passport to the economy and should be available to as many people as possible. We're keen to work with other financial providers on basic bank accounts to reduce exclusion across the industry.' Taking the fight to financial criminals Fraud and scams continue to be a top concern for customers. Westpac's ongoing investment to help keep customers safe through new technology such as biometric software has led to an 11% increase in fraud prevention compared to the same time last year, helping reduce customer losses to fraud and scams by 14%. For every $10 of known fraud and scams that touched Westpac's systems in the last six months, the bank prevented, recovered or reimbursed $9. In March Westpac rolled out digital credit and debit cards for customers with dynamic security codes[v], reducing the chance of fraudulent activity on their card if their details were stolen. 'We're the first New Zealand bank to offer a dynamic security code feature alongside instant issuance for debit cards,' Ms McGrath says. 'That means a customer who gets a new or replacement debit card can start spending online straight away, and they can spend with confidence knowing we're working round the clock to keep their money safe. 'We're making progress as an industry, and are pleased to see other parts of the ecosystem stepping up, such as Google rolling out financial services verification to crack down on fake investment ads. However, we're concerned that other social media and tech companies' continued lack of action is putting New Zealanders' money at risk. 'There's a lot more they could be doing to clamp down on financial crime, such as rolling out their own financial services verification process, as well as cracking down on fake profiles and regulating social media marketplaces to protect buyers and sellers. 'We're investing to improve our systems and processes all the time, but banks are only the 'offramp' to a successful scam. Social media and online platforms are a major 'onramp' and we want to work with them to stop fraud and scams at their source.' Key financials (All comparisons are for the 6 months ended 31 March 2025 versus the same period last year) Pre-provision profit of $763 million, up 11% (up 10% excluding Notable Items). Net profit of $525 million, up 10% (up 9% excluding Notable Items). Net operating income of $1,497 million, up 8% (up 8% excluding Notable Items). Operating expenses of $734 million, up 6% (up 6% excluding Notable Items). Net impairment charge of $33 million, compared with an impairment charge of $23 million in the previous period. Net interest margin 2.26%, up 15 basis points excluding Notable Items. Home lending up 3% to $69.5 billion, Business lending up 1% to $33.0 billion, Deposits up 3% to $80.9 billion. A mixed economic picture Despite mixed economic indicators and uncertainty around the impact of tariffs on global trade, Westpac is predicting New Zealand's economy to grow 2.6% this year and 3% in 2026 – albeit with downside risks. 'Although the geopolitical outlook and global trade environment continues to change week to week, our economists currently think the impact of tariffs to New Zealand's economy will be manageable,' Ms McGrath says. 'Domestically, the picture is mixed. GDP growth in the December 2024 quarter was stronger than expected and many higher-frequency indicators have shown improvement, such as business confidence and housing market and manufacturing activity. 'But consumer spending has faltered recently. Economic growth is not yet broad-based, with urban areas lagging rural areas that have benefited from improving tourism and strong commodity prices, particularly in the dairy and meat sectors. 'Households have seen volatility in their KiwiSaver balances in recent weeks, which may be unsettling, but should serve as a reminder to think long term and ensure their investment goals have them on track for the retirement they want. 'While it's hard to make any firm predictions right now, uncertainty is likely to persist over the coming months. We'll continue to stand alongside our customers to help them weather the challenges and take advantage of the opportunities ahead.' Notes: [i] Westpac NZ is a segment of the Westpac Banking Corporation Group (Westpac Group). Westpac NZ includes, but is not limited to, Westpac New Zealand Limited, BT Funds Management (NZ) Limited and WBC (New Zealand branch). The financial results of the Westpac New Zealand Limited Banking Group (WNZL Banking Group) will be available in the Westpac New Zealand Limited Disclosure Statement, with a reconciliation between the two results also provided in the Westpac NZ Summary Financials section of this media release. [ii] [iii] [iv]
