18 June 2009

Media Release
Embargoed until 6pm today

TSB Bank leads the way to lower home loan costs

New Zealand-owned TSB Bank today reduced its 2 year fixed-rate home loans to a nationwide low of 5.99% per annum.

Managing director Kevin Rimmington said the bank remained unaffected by the
comings and goings on worldwide financial markets – and was determined to pass
the benefits of this on to New Zealanders.

“TSB Bank’s ownership, funding and investment strategy means it has been effectively shielded from the flow-on effects experienced by many of the multinational banks.”

“All our funding is obtained from within New Zealand – we rely on the deposit support
of our customers. Right now, we’re experiencing record levels of funds growth.”

Mr Rimmington said TSB Bank’s investment strategy had always been somewhat conservative - and largely home loan focused.

“Most of our investments, up to 65% of our assets in fact, go into providing home loans
to every-day New Zealand families. We’ve been doing so for more than 150 years,
now – this rate reduction is simply continuation of that commitment.”

ENDS