Latest news with #Kiwibank
National Business Review
an hour ago
- Business
- National Business Review
Big business coping better than small in current economy
Larger New Zealand firms are hanging on better than smaller businesses in the current economic environment, with cost and inflation pressures still weighing heavily. Kiwibank has today released its latest State of Savings Index, which included responses from consumers and businesses across the
1News
3 hours ago
- Business
- 1News
Kiwibank greenlit to raise $500m capital to challenge big four banks
Kiwibank has been given the green light to raise up to $500 million in new capital, a move the Government says will help the New Zealand-owned bank better compete with the big four Australian-owned banks. Finance Minister Nicola Willis announced on Wednesday that, following a market-testing process, Cabinet had approved Kiwibank's parent company to raise up to $500 million of capital to fund the bank's growth. "Allowing Kiwibank to raise up to an additional $500 million is the first step towards giving Kiwibank access to the capital it needs to truly compete with the big four Aussie banks while retaining its intrinsic New Zealand identity." A Commerce Commission report released in August last year found the banking sector was "uncompetitive' and that the four big Australian-owned banks made high profits while Reserve Bank rules made it hard for smaller banks to challenge. Several recommendations were made, including to increase Kiwibank's capital funding. ADVERTISEMENT Willis said advice to the Government was that an additional $500 million of capital could support up to $4 billion of business lending or $10 billion in home lending. "To assess interest in Kiwibank, Kiwi Group Capital (KGC) engaged with New Zealand KiwiSaver funds, investment institutions and professional investor groups including Māori institutions." They advised her there was "sufficient interest" from professional New Zealand investors groups to proceed. While the capital raise is not a state asset sale—no Crown shares will be sold and all funds raised will go toward Kiwibank's future growth—Willis said a future government may consider a public listing of the bank but that this would not happen without an electoral mandate. The Government had also approved measures to safeguard the bank's New Zealand identity. These include: Maintaining at least 51% government ownership of KGC for the foreseeable future. Requiring a majority of KGC's directors to be normally resident in New Zealand. Ensuring Kiwibank retains its current name and principal place of business in New Zealand. Limiting any future foreign investors to a maximum of 20% ownership. Keeping Kiwibank's head office in New Zealand. ADVERTISEMENT KGC had until June 30, 2026 to complete a capital raise which would be subject to final approval of terms and conditions from shareholding Ministers. Kiwibank. (Source: Supplied) KGC chairperson David McLean said the Government had reaffirmed its commitment to supporting Kiwibank as a competitive, New Zealand-owned alternative to the large banks. "The capital raise process aims to provide Kiwibank with capital to continue its above market growth and enhance its competitive position while ensuring all funds raised are invested into New Zealand's future. There will be no return of capital to the Crown, and no changes for Kiwibank customers." Kiwibank chief executive Steve Jurkovich said the bank existed to challenge the status quo and disrupt the banking sector for the benefit of New Zealanders. "Delivering on our purpose of 'Kiwi making Kiwi better off' is what differentiates Kiwibank and drives our performance, and that is what we continue to be focused on. Any capital raise would be structured to ensure Kiwibank's continued role to improve services and pricing for consumers."
National Business Review
3 hours ago
- Business
- National Business Review
Kiwibank listing would need an electoral mandate
Deals 2 mins to read Kiwibank listing would need an electoral mandate In the long term, the most accessible source of capital is through a listing on public markets, says Finance Minister. Kiwibank is gearing up to take on the Australian-owned banks.
NZ Herald
3 hours ago
- Business
- NZ Herald
Government gives Kiwibank green light to get $500 million capital injection from private sector
Kiwibank to remain at least 51% government owned. Photo / Supplied Reminder, this is a Premium article and requires a subscription to read. Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech. Already a subscriber? Sign in here Access to Herald Premium articles require a Premium subscription. Subscribe now to listen. Government gives Kiwibank green light to get $500 million capital injection from private sector Kiwibank to remain at least 51% government owned. Photo / Supplied The Government has given Kiwibank's parent company the green light to raise up to $500 million of capital to help the bank grow. The decision comes as Kiwi Group Holdings has advised the Government there is enough interest among large New Zealand investors to proceed with a capital raise. Kiwi Group Holdings will now start negotiating with KiwiSaver funds, investment institutions, and professional investment groups to try to have a raise completed by June 30, 2026. Any deals will need the approval of shareholding ministers to advance. The terms and conditions of these deals are yet to be negotiated.
Reuters
4 hours ago
- Business
- Reuters
New Zealand government-owned Kiwibank to raise up $298 million
WELLINGTON, July 30 (Reuters) - New Zealand has approved government-owned Kiwibank's parent company raising up to NZ$500 million ($298 million) as it looks to compete with Australian banks that dominate its banking sector, Finance Minister Nicola Willis said on Wednesday. "(This) is the first step towards giving Kiwibank access to the capital it needs to truly compete with the big four Aussie banks while retaining its intrinsic New Zealand identity," Willis said in a statement. Kiwibank is New Zealand's fifth largest bank, with the four largest banks all Australian owned. In August 2024, following a review of the sector, New Zealand's competition watchdog suggested that capitalising Kiwibank could provide the sector with a disruptor, which could improve competition. Willis said that advice she had received was that an NZ$500 million of capital could support up to NZ$4 billion of business lending or NZ$10 billion of home lending. Kiwibank parent company Kiwi Group Capital had advised there is sufficient interest from professional New Zealand investor groups to proceed and has until June 2026 to complete a capital raise, the statement said. Willis added that a future government may choose to publicly list Kiwibank on the stock exchange but that will not occur without an electoral mandate. Kiwibank was established in 2001 and has a market share of around 9%. The government has introduced a number of measures to safeguard the bank as New Zealand-owned and operated including a requirement that government maintain a 51% stake in the bank and retain New Zealand as its principal place of business. ($1 = 1.6790 New Zealand dollars)
