TSB sees mortgage growth
TBS Bank believes more customers "want to choose an NZ-owned bank" after it recorded home lending growth of 2.9% in the three months to March.
Friday, June 7th 2019, 3:16PM
TSB has been on an aggressive price drive so far this year with its price match offer, promising to match the terms available from the Australian-owned big four.
The bank saw home lending reach $4.8 billion in the three months to March, representing an increase of nearly 3%. The bank says home loan lending grew by 10.3% from March 2018 to March 2019.
TSB's campaign -- aimed squarely at the big banks -- comes in the wake of the Royal Commission in Australia, which unearthed endemic misdonduct at some of the region's major banking groups.
Justine St John, general manager of market at TSB, told TMM Online the bank's aggressive price match offer would run "until further notice".
It comes as the bank today slashed its one and three year rates by 10 basis points. Its one year rate is now 3.95%, and its three year rate is 4.05%.
St John believes the growth in TSB's mortgage book shows more Kiwis want to keep their lending onshore.
"I think what this comes down to is that many Kiwi’s aren’t comfortable with more than $5 billion in combined profit from Australian-owned banks leaving our shores," she said.
St John added: "These recent figures show that many Kiwis want to choose an NZ-owned bank like us, and better support their own community by doing so."
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