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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news