Financial Services New Zealand

Innovation drives growth in New Zealand FSNZ net profit* up Home loans reached

HIGHLIGHTS FSNZ net profit* increased by 31% to $293 million, largely driven by growth in housing loans, cost containment and reduced provisioning charges 70% of employees have completed Second to None training, focusing on customer retention and satisfaction Use of internet banking increased after the new service was launched in April 2002, bringing total internet customer numbers to just under 100,000 BNZ was named FundSource Fund Manager of the Year in 2002     *Excludes the after tax impact of significant items

A solid 11% increase in core lending during the year was driven by the take-up of home loans that earn customers loyalty points each month.

A new range of transaction and savings accounts helped boost retail deposits by 20%. Products such as Fleximoney, designed for customers who prefer to do their banking electronically, and Dynamic Money, for customers under 18, have been very well received.

Convenient access
The number of people using internet banking has risen by 66% following the April 2002 upgrade of www.bnz.co.nz.

Smart ATMs rolled out across the network provide convenient services like bill payment and ordering movie tickets. Customers can also withdraw Australian dollars from Auckland International Airport ATMs.

Credit card transaction volumes (by value) were also up after the launch of a new-look range of cards with more flexible payment and interest plans.

Customer partnerships
The BNZ Ag-Benchmark Service - possibly the largest agri-financial benchmarking database in Australasia - was popular. The service helps customers to identify areas where they can improve their business' profitability.

Our Owner Operator Management Program (through the business incubator, 'Icehouse') and Agribusiness Growth Program have helped over 1,000 business and Agribusiness customers address growth issues.

Using leading-edge Customer Relationship Management software, BNZ staff can now anticipate customer needs more effectively. The software alerts staff of significant events on customer accounts (like term deposit maturity) so they can contact customers who may be reassessing their financial needs.

Outlook
In 2003, we will focus on growth, margin and cost management, staff career development and training.