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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news