Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


A 75 Year History of PSIS

Media Release
10 March 2005

"Over half a million careful owners': A 75 Year History of PSIS

A book to chart the 75 year history of PSIS was released today at a ceremony attended by many of those who have contributed to its success over that time.

PSIS Chairman, David Gascoigne, who has been a board member since 1982, said at the launch: "PSIS is one of the longest serving financial organisations in New Zealand, and it is one of the few that has remained New Zealand-owned."

PSIS was established in 1928 as a co-operative organisation, to help New Zealanders working in the public service access low-cost financial services.

It was an initiative of the PSA to improve the living standards of public service employees during difficult times, including poor salaries compared with private sector levels and a reluctance on the part of mainstream lenders to provide finance at affordable interest rates. Today, any New Zealander can be a customer of PSIS.

The book reveals PSIS as a progressive organisation that has been much more willing to help than most financial services organisations. Not only did PSIS lend money to public servants when others were reluctant to do so, it also made loans to women long before other financial organisations.

Gordon Boyce, the author of the book, said at the launch: "In the latter part of the 20th century, co-operatives have not fitted easily into a business environment driven by an emphasis upon market forces and profits. However, there is a sea change in this early part of the 21st century in the way in which consumers are wanting to relate to the businesses that provide them with goods and services."

"Increasingly, consumers want to deal with companies that they can trust to put the customer's interests before profits. It is in this environment that we are seeing a renewed interest in co-operatives and why this history of the first 75 years of PSIS is so timely," Mr. Boyce said.

The launch of the book follows a recent announcement that for the third year in a row, an independent survey found PSIS customers are more satisfied with the service they receive than customers of any other bank.

"What this tells us is that PSIS is as relevant now as the day it started. Its success is due to the founding principles, and in the commitment to those principles by the men and women who have supported and managed PSIS since it started," Mr Gascoigne said.

"The book, Over half a million careful owners, shows how PSIS has not only survived, it has thrived. Of course, over the years it has had its share of troubles. And, at their worst, they were serious. But throughout these, it has stayed true to its values and the principle that as a co-operative, PSIS exists for the benefit of its customers, who are the shareholders in the company," Mr Gascoigne said.

"PSIS today goes forward with a strong balance sheet and strong sense of business purpose, and with an underlying resolve to adhere to the values that have stood it in such good stead for its first 75 years," Mr. Gascoigne concluded.

The book is available for purchase through PSIS branches, or by emailing



What is PSIS?

PSIS was formed in 1928 to help New Zealanders in the public service with low-cost financial services. It now offers its products and services to all New Zealanders. While not a registered bank, it delivers full personal banking services, including daily transactional banking, deposits, lending and insurance products. It focuses on personal rather than business banking.

Ownership and Governance

PSIS is New Zealand-owned. It is a co-operative in structure, owned by its 126,000 customers, who each have one non-transferable share. There are no outside shareholders.

PSIS is a limited co-operative company, governed by a Board of Directors. Current Board members are David Gascoigne CBE (Chairman), Rob Crozier, Peter Harris, Colin Hicks, John Isles and Tina Symmans.

A values-based organisation

PSIS exists to benefit its customers -its shareholders - and is governed by a statement of values. Its business focus is to meet the changing financial needs of New Zealanders and their families at all stages of their lives. PSIS operates profitably, but not at the expense of any sector of its customer base and not excessively so. This ethos is central to the way PSIS conducts all its business.

Branch network

PSIS has 31 branches from Whangarei to Invercargill. Two new branches were opened in Papanui, Christchurch and Botany Downs, Auckland in 2004. An emphasis is placed on face-to-face banking and personal service. PSIS also offers 24 hour, 7 day a week access through internet, telephone and text banking.

Financial Performance

For the year ending March 2004:

- Pre-tax profit increased 7.6% to $10.8m

- Pre-tax return on average total assets 1.52%

- Net profit after tax increased 9.3% to $7.6 million

- Total assets increased 14.6% to $759.1 million

- Deposits increased 15.4% to $653.0m

- Loans increased 21.3% to $587.3m

- Total reserves up 12.4% to $70.3 million

- Capital adequacy (using Reserve Bank formula) 18%.

PSIS People

Chief Executive: Dr Girol Karacaoglu

Senior Management:

Simon White Chief Financial Officer

David Murray GM Marketing and Products

Annette Natta GM Information Technology

Kerry De La Haye GM Human Resources and People Development

Peter Mayne Head of Credit Policy and Special Projects

Russell Syme GM Customer Channels and Distribution

Staff PSIS has around 240 staff, in 31 branches around New Zealand and in the Wellington head office.

Auditors: Deloitte

Legal Status

PSIS is registered under both the Companies Act 1993 and Co-operative Companies Act 1996. PSIS is a member of the New Zealand Financial Services Federation and the New Zealand Co-operatives Association. PSIS is not a registered bank.

Prudent Management

There are two levels of protection for customers' deposits. Firstly, a the Trust Deed is supervised by New Zealand Guardian Trust, independent trustees who ensure PSIS operates within specified financial ratios. Further to this, the PSIS Board sets higher levels of liquidity and capital requirements. For example, the capital adequacy on a risk-adjusted basis is 18%, more than double the minimum 8% required by the Reserve Bank for registered banks.

Products and Services

PSIS offers a full range of personal banking services to meet the changing needs of its customers throughout life. It offers savings accounts, current accounts, call accounts, Internet Banking, Telephone Banking, TXT banking, access to all ATMs (apart from TSB) and EFTPOS, cheque facilities, overdrafts, Creditline accounts, Term Deposits, Bonds, home loans, vehicle loans and personal loans. It also provides a wide range of insurance products.

PSIS is committed to the highest levels of service. This is reflected in an independent banking survey where, for three years in a row, customers of PSIS have been more satisfied than those with any other bank.

Contact us:

Head Office: PSIS Limited, Cnr Featherston and Ballance Streets, PO Box 54, Wellington. Telephone: (04) 495-7700 Fax: (04) 495-7701


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>