Archive for February, 2011

NZ’s big five banks on the up-and-up

Friday, February 11th, 2011

With signs of recovery from the global financial crisis, NZ’s top 5 banks have shown collective profits of $2.7 billion in the last financial year.

The report, by PwC, on ANZ National, ASB, BNZ, Westpac and Kiwibank ‘wipes out’ the the $76 million loss made by the banks during the GFC.

“The majors’ full-year results reinforce their financial strength and the profitability of New Zealand’s banking system and confirms the ills of 2009 are well and truly laid to rest,” predicts Sam Shuttleworth, financial services partner.

The full article on is available here.

New computer system costly for Tower

Friday, February 4th, 2011

Stuff reports that Tower‘s new computer system has resulted in a costs blowout of around $1 million NZD for every month of delay.

The $30 million project (or so it was initially priced) faces software development issues and also a delay in commissioning of around five months, meaning the final project price will probably run to millions more.

Tower investors were told that the total project cost will probably run to the $36 million mark.

Brian Gaynor of Milford Asset Management, owner of about 4.5 per cent of Tower, hit back at claims that the group is ‘over-capitalised’, saying, “Yes, I agree we’ve got a lot of money, a lot of cash, and that’s not all a bad thing.”But having said that, the board is addressing our whole capital structure in the next two months and we’ll be looking at what and where we need it and what we’re planning on doing with it and, if appropriate, there might be a return of capital to shareholders but I’m not promising that here and now.”

Perhaps the funds need to go towards the computer system…..