interest.co.nz announces Term deposit market size
www.interest.co.nz announces Term deposit market size
www.interest.co.nz today released details of the size and growth of the New Zealand term deposit market.
This market is large. Investors have more than $67 billion invested in both bank, and non-bank institutions in New Zealand as at 31 December 2004, +12.3% more than a year earlier.
Investment in bank term deposits is by far the largest portion, making up more than $55 billion, or more than 80%. Finance company debentures have attracted $8.7 billion and this sector is growing rapidly, increasing +18.2% above a year earlier. Unsecured deposits in other non-bank institution, mainly building societies and organizations like the PSIS, hold $3.8 billion of investors term deposits and grew +14.0% from a year earlier.
These results are posted on www.interest.co.nz and are available to registered users. Registration is currently free. They compliment an extensive range of rate trend graphs for mortgage, moneymarket, and term deposit tracking, as well as bank mortgage market shares.
To put the term deposit market in perspective, for the year to 31 December 2004, New Zealand exported goods worth $30.7 billion, and imported goods worth $34.9 billion1. New Zealand term deposit balances exceeded the sum of this annual trade in imports and exports.
For another perspective, managed funds, life insurance and superannuation invested in New Zealand at 31 December 2004 amounted to just $34.2 billion2 growing at just +2.9% pa.
ANZ-National has the lion's share of this market at 31.9%, plus the 3.2% held by its wholly owned finance company, UDC. Like most of the other major banks, term deposit balances are growing at the ANZ-National at the fast clip of about +13% per annum.
Among banks, Kiwibank's term deposit balances grew fastest, growing +250% during 2004. BNZ however, grew only +6.2% in the same period. HSBC's term deposits actually fell, going down by a quarter of a billion dollars, as its drive to retain the accounts it acquired from the old AMP Bank did not work.
UDC is the largest finance company with $2.1 billion in secured debentures. However, these term deposits are static year-on-year. They grew by +3.0% in the first half of 2004, but fell back -3.5% in the second half.
The Hanover Group (Elders Finance, United Finance, Nationwide, and FAI Finance) is the next largest non-bank finance company. Their secured debentures grew by more than $200 million between 2003 and 2004, and by December 2004 they had deposits exceeding $1 billion, growing at close to +30% per year.
The Pyne Gould/Marac group, and the South Canterbury Finance group are the next largest finance companies, both growing faster than the industry averages.
The fastest growing finance company term deposit book belonged to Pacific Retail Finance, rocketing up by more than $107 million or +67% as reported for 2004. Capital and Merchant Finance, and Strategic Finance also posted stellar growth.
At the other end of the scale, the 2004 published results show that very low growth was achieved by Speirs Group, Medical Securities, Mascot Finance, and Fisher&Paykel Finance.
Most of the larger building societies grew at about the same rate as the market averages, although the stand-out performer was HBS Building Society from the Hawkes Bay, posting +34.9% deposit growth in 2004. On the other hand Auckland's Southern Cross Building Society was a laggard, showing only modest 3.9% growth in deposits.
These market details form part of www.interest.co.nz 's comprehensive database of the New Zealand financial industry. Key summaries of the latest audited financial statements of more than 80 institutions are freely available on the site. In addition, the SQP Score©, a relative ranking of all institutions in the New Zealand financial market who offer deposits, is also freely available to investors and depositors.
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