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

 


BNZ’s new CEO Healy expects benefit from expanding economy

BNZ’s new CEO Healy expects benefit from expanding economy, targeted investment

By Tina Morrison

April 17 (BusinessDesk) - Bank of New Zealand’s incoming chief executive Anthony Healy expects the lender to benefit from the nation’s burgeoning economy as he targets investment in higher growth areas such as agri-business.

New Zealand’s economy is expected to grow between 2 percent and 4 percent a year out to 2018, Finance Minister Bill English said this week, citing Treasury forecasts.

“I’m very optimistic because the economy is picking up, it’s not a narrow base, it’s a very broad-based economic lift,” said Healy, who will take over as head of the New Zealand unit of National Australia Bank next month. “I’m very optimistic that we are going to see continued growth from the economy but also from banks and institutions as we continue to fund that growth.”

“You will probably see general growth in the banking sector because of the economy strengthening but we have also tailored our strategy to focus on where we see growth opportunities in the economy,” Healy said. “That should give us some outperformance in those sectors relative to our competitors.”

Bank of New Zealand is investing in the productive sector and estimates its share of the agribusiness market has grown from the “high teens” to “20s” in the past five years.

“Historically we had smaller market share but we have seen significant and steady growth in our market share over the last five years, it has been a real success story for us, and I think that will continue,” Healy said. “Agriculture is clearly growing because of the demand for food, particularly in Asia. That I think will continue to grow and be a real source of strength for the economy and for us as a bank.”

Still, system growth has slowed as farmers use higher income to pay down debt, he said.

The bank is also investing in its KiwiSaver and wealth products to benefit from a demographic change which is seeing more investment in retirement products, and in digital services to counter increased competition from non-traditional rivals such as Google, he said.

“If anything, competition is rising so that will always be a challenge,” he said.

Healy, previously head of BNZ's business bank BNZ Partners, has worked in banking since 1991 and takes over the top job from May 12, replacing Andrew Thorburn, who is to be group chief executive of BNZ's Melbourne-based parent, National Australia Bank starting in August. Thorburn's appointment was announced two weeks ago.


Healy's appointment as chief executive and managing director of BNZ is subject to regulatory approval. He will also join NAB's group executive management committee, the bank said.

Shares in ASX-listed NAB last traded at A$35.18 yesterday and have gained 1 percent so far this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news