Two thirds of its customers were ahead in their mortgage repayments
Westpac New Zealand has reported a balanced financial result for the year ending September 30, 2019 as a result of its consistent focus on providing the best services to its customers.
Core earnings for the financial year fell 1% on the same period last year, amid strong competition and more investment in technology, risk, and compliance systems. However, consistent low level of impairments and the sale of Paymark boosted the bank’s cash earnings.
David McLean, chief executive of Westpac NZ, said low interest rates are helping first-home buyers and those looking for more opportunities to climb the property ladder – noting that two thirds of their customers were ahead in their mortgage repayments by a median average of eight months or an average of $8,652 in the financial year.
“We’ve never seen interest rates this low in New Zealand. It helps with housing affordability and business investment, and presents a great opportunity for existing borrowers to pay down debt,” McLean said.
He also noted that they have become the first bank in the country to launch a dedicated mortgage product that aimed to help Kiwis get into prefabricated homes.
“Prefabricated homes generally cost less and can be built quickly, helping with affordability and housing supply,” he said.
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McLean said they will continue to focus on simplifying their business as well as identifying and remedying historical issues with some products and services.
“New complaints are being resolved faster and we’ve stepped up our training in achieving great outcomes for customers, with a second wave of mandatory workshops rolled out to employees – including non-customer facing roles – in the past few months,” McLean explained.
They’re also still working with the Financial Markets Authority (FMA) and the Reserve Bank of New Zealand (RBNZ) in regards to their Conduct and Culture Reviews of the banking and life insurance sectors.
“We have worked constructively with the Reserve Bank on this issue in some detail and are pleased with the outcome,” McLean concluded.
