Kiwibank takes all of advisory firm
Kiwibank has bought the remaining 24% of New Zealand Home Loans it doesn't already own.
Monday, July 9th 2012, 9:24AM
by Jenny Ruth
The bank first bought into NZ Home loans, which has 59 franchises and 190 consultants nationwide, in 2006. It accounts for about 30% of Kiwibank's mortgage business.
The company says it will write more than $950 million in mortgages in the year ending June 2013 and expects to exceed $1 billion the following year.
Kiwibank's mortgage book stood at $11.43 billion at March 31.
NZ Home Loans chairman Neil Richardson says the company will continue to operate as a separate entity from its Hamilton head office under its existing management structure – chief executive is Mark Collins – with no change to its franchise business model.
“Both businesses were founded with the vision of putting New Zealanders into a stronger financial position,” Richardson says. “It was important for us to remain in 100% New Zealand ownership and keep millions of dollars of mortgage funding in the New Zealand economy.”
John Erkkila and Murray Ferguson set up NZ Home Loans in 1996.