Which are NZX-listed banks in New Zealand?

Highlights

• New Zealand has 3 main banks listed on the NZX.
• Banks in New Zealand have total assets of just over NZ$667 billion.

New Zealand’s banking sector is small by international standards. The two big banks listed on the NZX are subsidiaries of Australian-owned banks - ANZ and Westpac. 

According to the Fitch rating agency, NZX-listed banks are well-positioned for rising interest rates. Against this backdrop, let’s take a look at some NZX-listed banks.

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Westpac Banking Corporation (NZX: WBC)

Westpac is an Australian bank with headquarters in Sydney, Australia. As per the company website, it provides a wide range of financial services in the New Zealand and Australian markets. These services include consumer, business, and institutional banking with wealth management services.  

As per a company report, recently, the completion of the sale of its life insurance business to TAL Dai-ichi Life Australia Pty (1 August 2022) is among its important developments. The transaction took almost one year to complete as it was first announced on 9 August 2021. Due to the sale of the life insurance business, Westpac expects a loss after the sale of approximately AU$1.37 billion. The total sale price stood at AU$900 million.

Peter King, Chief Executive, Westpac, said that the technology revamp would enable the bank to approve digital mortgage applications in minutes. Further, he said that the bank would be giving a lot of thrust to its digital banking.

On 7 October, the stock was trading down0.36% at NZ$24.800, at the close of the session.

Australia and New Zealand Banking Group Limited (NZX:ANZ,ASX:ANZ) 

As per the company website, ANZ is also one of the largest banks operating in New Zealand. Its headquarter is in Melbourne, Australia, and the bank operates in 32 locations. It is Australia's second-largest bank by assets and fourth-largest bank by market capitalisation. The company says it boasts over 8.5 million retail and commercial clients.

In its trading update for Q3 FY22, (18 July 2022), the bank said that the quarter witnessed good lending and margin momentum across all major businesses.

Chief Executive Officer (CEO) Shayne Elliott said that Q3 FY22 was a pleasing quarter in which all businesses did well. He said while rising inflation was starting to impact customers, households and business balance sheets were in good shape with a collective provision balance of AU$3.8 billion. 

Recently, ANZ also struck a deal with Suncorp Group of Australia. According to the deal, Suncorp would be selling its banking arm to ANZ for a total transaction cost of AU$4.9 billion. The deal is expected to close by the second half of CY2023.

 On 7 October, the stock was trading up 0.29% at NZ$ 27.580, at the close of the trading session

Heartland Group Holdings Limited (NZX:HGH)

HGH is an NZ-based financial services company listed on the NZX. In its annual report released on 29 September, the group reported a net profit after tax (NPAT) of NZ$95.1 million for FY2022, which ended 30 June 2022. 

On 23 August 2022, Heartland announced a NZ$ 200 million equity raise. The equity raise comprised a NZ$130 million fully underwritten placement and a non-underwritten share purchase plan to shareholders in New Zealand and Australia to raise to NZ$70 million, with the ability for Heartland to accept oversubscriptions at its discretion.

Earlier in July, the bank completed the acquisition of StockCo Australia for a total consideration of AU$154.4 million. This will help HGH expand its product offerings in Australia.

On 7 October, the stock was trading up by 0.58% at NZ$ 1.720, at the close of the session.