3 November 2000 Media Statement
Westpac result shows room in market for kiwi bank
Deputy Prime Minister Jim Anderton says claims that a kiwi bank couldn't make a profit are looking increasingly
desperate after WestpacTrust announced its profit result today.
Westpac's profit announcement reveals the Australian-owned bank made an after tax profit on its New Zealand retail
operations of A$250 million last year (NZD$327 million). Its 'non-interest' income is up 9%, which Westpac attributes in
part to 'fee repricing.'
Competing banks argue in today's National Business Review that a kiwi bank would need to be subsidised. But Jim Anderton
is rejecting those claims.
"With Westpac making a return on shareholders' funds of 16.2%, it is clear that the banking sector is very profitable.
If they can be so successful, it stands to reason that a kiwi-owned bank using New Zealand's most successful public
company – NZ Post – can also make money.
"One can only speculate about the motives of potential competitors who are trying to block a kiwi bank from competing
against them," Jim Anderton said.
ENDS