Westpac NZ margins squeezed by shift to fixed rate mortgages, increased rivalry

Mon, 03 Nov 2014

By Fiona Rotherham Nov. 3 (BusinessDesk) - The switch from floating to fixed interest rates mortgages has impacted Westpac New Zealand’s net interest margin,which fell six basis points in the 2014 financial year. Net interest margin is the difference between what interest the bank charges for loans and what it has to pay for the money. It fell to 2.27 percent in the year ending Sept. 30, from 2.33 percent a year earlier, reflecting narrower margins on home loans. Chief financial officer Leigh Bartlett said Westpac NZ had a two basis po...

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