ANZ Bank New Zealand
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ANZ Bank New Zealand Limited (commonly referred to as ANZ) is a New Zealand
banking A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...
and
financial services Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, acco ...
company, which operates as a subsidiary of
Australia and New Zealand Banking Group The Australia and New Zealand Banking Group Limited (ANZ) is an Australian multinational banking and financial services company headquartered in Melbourne, Victoria. It is Australia's second-largest bank by assets and fourth-largest bank by ma ...
Limited of Australia. ANZ is one of New Zealand's big four banks, and is the largest bank in New Zealand with approximately 30% of market share as of March 2021. Australia and New Zealand Banking Group bought the
National Bank of New Zealand The National Bank of New Zealand Limited (NBNZ), often referred to as The National Bank, was one of New Zealand's largest banks. Throughout much of its history, the National Bank provided commercial banking services to mainly major industrial and ...
from
Lloyds Bank Lloyds Bank plc is a British retail and commercial bank with branches across England and Wales. It has traditionally been considered one of the " Big Four" clearing banks. Lloyds Bank is the largest retail bank in Britain, and has an exte ...
in 2003. The banks operated as separate brands until 2012, when they were unified under the ANZ brand. The company was renamed ANZ Bank New Zealand in 2012, following the withdrawal of the National Bank brand. ANZ provides a number of financial services, including banking services, asset finance, investments and payment services.


History


19th century

In 1840,
Union Bank of Australia The Union Bank of Australia was an Australian bank in operation from 1837 to 1951. It was established in London in October 1837 with a subscribed capital of £500,000. The foundation of the bank had followed a visit to England by Van Diemen's Land ...
(UBA), a British bank with head office in London, agreed with the New Zealand Company to accompany settlers to New Zealand to provide them with banking services. UBA opened a branch in Petone, across the harbour from
Wellington Wellington ( mi, Te Whanganui-a-Tara or ) is the capital city of New Zealand. It is located at the south-western tip of the North Island, between Cook Strait and the Remutaka Range. Wellington is the second-largest city in New Zealand by me ...
, where it transferred the branch shortly thereafter. Between 1840 and 1847 the Union Bank issued its own bank notes for circulation in New Zealand. These were initially issued under British law until 1844 when the New Zealand Governor signed an ordinance allowing the Bank to issue bank notes but required that these be a minimum of 1 pound and redeemable at demand for gold or silver. In 1848, The Governor withdrew Union Bank's right to issue bank notes and transferred these rights to the
Colonial Bank of Issue The Colonial Bank of Issue was a New Zealand state owned bank that operated between 1847 and 1856 in an early unsuccessful attempt to create a government-owned issuer of bank notes in New Zealand. The bank was created by an Ordinance of the Gov ...
(CBI). UBA notes in circulation were withdrawn and replaced with CBI bank notes. UBA objected, and every day it took whatever CBI notes it had received that day to the CBI and demanded redemption in gold; when UBA's customers wanted to withdraw money, the bank paid them in gold rather than CBI notes. This policy, when combined with previous confusion related to the issue of NZ Government debt, and support from the local commercial community, resulted in the CBI ultimately being shut down. The same year, UBA opened a branch in
Auckland Auckland (pronounced ) ( mi, Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The List of New Zealand urban areas by population, most populous urban area in the country and the List of cities in Oceania by po ...
, and a small number of branches elsewhere in the country followed. The following year, UBC resumed issuing bank notes in New Zealand under an act of the New Zealand Parliament. ( The Paper Currency Act 1856). In 1864,
Bank of Australasia The Bank of Australasia was an Australian bank in operation from 1835 to 1951. Headquartered in London, the bank was incorporated by Royal Charter in March 1834. It had initially been planned to additionally include first South Africa and then ...
, another London-based bank, opened branches in Auckland,
Dunedin Dunedin ( ; mi, Ōtepoti) is the second-largest city in the South Island of New Zealand (after Christchurch), and the principal city of the Otago region. Its name comes from , the Scottish Gaelic name for Edinburgh, the capital of Scotland. Th ...
and
Christchurch Christchurch ( ; mi, Ōtautahi) is the largest city in the South Island of New Zealand and the seat of the Canterbury Region. Christchurch lies on the South Island's east coast, just north of Banks Peninsula on Pegasus Bay. The Avon River / ...
.


20th century

In 1951, UBA and the Bank of Australasia merged to become the Australia and New Zealand Bank. In 1968, ANZ Bank joins
Databank Systems Limited Databank Systems Limited was the name of a not-for-profit "off balance sheet" company set up by a consortium of competing banks in New Zealand, to operate on what is nowadays termed a "Shared services Shared services is the provision of a servic ...
consortium to provide joint data processing services. Two years later, ANZ Bank merged with a third London-based bank, the English, Scottish and Australian Bank, to form ANZ Banking Group. In 1976, ANZ moved its corporate headquarters to
Melbourne Melbourne ( ; Boonwurrung/Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a met ...
, Australia. In 1979, An Act of Parliament permitted ANZ to incorporate its branches in New Zealand as ANZ Banking Group (New Zealand) Ltd. ANZ sold 25% of the shares to the public. In 1983, ANZ opened its New Zealand head office in Wellington. In 1989, ANZ bought
PostBank Postbank or Post bank may refer to: Postal savings systems (alphabetical by country) * Bulgarian Postbank, a Bulgarian retail bank * Chunghwa Post, a Taiwanese postal service that provides savings account services * Deutsche Postbank, a German reta ...
(the Post Office Savings Bank) from the New Zealand government in a privatization. Two years earlier, the Government had separated the Post Office's banking business into a separate entity to prepare it for sale. In 1999, ANZ launches internet banking.


21st century

In 2002, ING and ANZ form a joint venture under the ING brand The following year, ANZ bought
National Bank of New Zealand The National Bank of New Zealand Limited (NBNZ), often referred to as The National Bank, was one of New Zealand's largest banks. Throughout much of its history, the National Bank provided commercial banking services to mainly major industrial and ...
from
Lloyds TSB Lloyds Bank plc is a British retail and commercial bank with branches across England and Wales. It has traditionally been considered one of the " Big Four" clearing banks. Lloyds Bank is the largest retail bank in Britain, and has an exte ...
. In 2008, ANZ launches mobile application. The same year, ANZ announces around 400 jobs are to be moved to Bangalore, India. In 2009, ANZ Group CEO Mike Smith announces the Group's "super regional strategy" where the Bank aims to not be "Kiwi" or "Australian" but a global bank. In September 2010, ANZ New Zealand became the sole owner of ING New Zealand Limited, which formed part of
ING Ing, ING or ing may refer to: Art and media * '' ...ing'', a 2003 Korean film * i.n.g, a Taiwanese girl group * The Ing, a race of dark creatures in the 2004 video game '' Metroid Prime 2: Echoes'' * "Ing", the first song on The Roches' 1992 ...
; ING provided investment advice for the investment and insurance products sold by ANZ and The National Bank. ING New Zealand Limited changed its name to
OnePath The Australia and New Zealand Banking Group Limited (ANZ) is an Australian multinational banking and financial services company headquartered in Melbourne, Victoria. It is Australia's second-largest bank by assets and fourth-largest bank by ma ...
Limited in November 2010. The same year, David Hisco replaces outgoing Jenny Fagg as CEO ANZ New Zealand. On 26 September 2012, ANZ National Bank CEO David Hisco announced that the National Bank would re-brand as "ANZ" by the end of October. The name of the company would change to "ANZ Bank New Zealand Limited". The technology of the two banks was brought together from 29 October 2012, with customers being able to use branches branded ANZ or the National Bank from the same date. Branches branded the National Bank would change to the ANZ branding before the bank's trademark license expired in 2014. In May 2019, the
Reserve Bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
stripped ANZ of its accreditation to set and manage its capital reserves over persistent failures since 2014. In 2013, Onepath is rebranded as ANZ Investments. In 2014, ANZ India gets Reserve Bank of India nod to open two branches in India. In 2015, ANZ announces ANZ ETFS joint venture with
ETF Securities ETF Securities is an asset management firm that issues exchange-traded funds (ETFs) primarily in Australia. History The company was founded by Australian businessman and philanthropist Graham Tuckwell. The company worked with the World Gold ...
to offer 6 ETFs on ASX. In 2017, ANZ announced it will sell its online sharebroking service, Direct Broking, to investment bank, First NZ Capital (FNZC), for an undisclosed sum. The sale was completed in December 2018. In 2019, Antonia Watson replaces David Hisco as acting CEO of ANZ NZ. In 2020, ANZ sold UDC Finance for $794 million to
Shinsei Bank is a leading diversified Japanese financial institution that provides a full range of financial products and services to both institutional and individual customers. It is owned by SBI Group and headquartered in Chuo, Tokyo. History SBI Shinsei ...
.


Organisational structure

ANZ NZ is wholly owned by
Australia and New Zealand Banking Group The Australia and New Zealand Banking Group Limited (ANZ) is an Australian multinational banking and financial services company headquartered in Melbourne, Victoria. It is Australia's second-largest bank by assets and fourth-largest bank by ma ...
Limited of Australia via two intermediates; ANZ Holdings (New Zealand) Limited and Pty Funds Limited (incorporated in Australia). The major shareholders of Australia and New Zealand Banking Group are
BlackRock BlackRock, Inc. is an American Multinational corporation, multi-national investment company based in New York City. Founded in 1988, initially as a Enterprise risk management, risk management and fixed income institutional asset manager, BlackR ...
Inc,
The Vanguard Group The Vanguard Group, Inc. is an American registered investment advisor based in Malvern, Pennsylvania, with about $7 trillion in global assets under management, as of January 13, 2021. It is the largest provider of mutual funds and the second-lar ...
and
Norges Bank Investment Management Norges Bank / Noregs Bank is the central bank of Norway. The bank shall promote economic stability in Norway. Norges Bank also manages the Government Pension Fund of Norway and the bank’s own foreign exchange reserves. History The history of ...
.


Subsidiaries

ANZ NZ has previously owned the Direct Broking brand and UDC Finance. In December 2018, Direct Broking was sold to Jarden Securities Limited, however ANZ NZ maintains a strategic alliance with the brand. UDC Finance was sold to
Shinsei Bank is a leading diversified Japanese financial institution that provides a full range of financial products and services to both institutional and individual customers. It is owned by SBI Group and headquartered in Chuo, Tokyo. History SBI Shinsei ...
in September 2020 for NZ$794 million. , ANZ's subsidiaries are:


Shareholdings

* Payments NZ Ltd * Precinct Properties New Zealand Ltd * Freightways Ltd * Investment Link (New Zealand) Ltd * Auckland International Airport Ltd


Operations


Personal banking

As a part of ANZ's personal banking services, the bank offers a number of different bank accounts, personal loans, home loans, a wealth management service, insurance and investment services.


Investment

ANZ Investments, is ANZ's subsidiary (previously ING) that manages investments. Currently it is the largest fund manager in NZ with approximately 745,000 customers. It is one of the nine Kiwisaver scheme managers appointed by the New Zealand Government in 2014.


Insurance

ANZ offers a number of insurance products through partnerships with different insurance companies including life and living insurance (Cigna Insurance), house insurance (Vero), contents insurance (Vero), car insurance (Vero) and travel insurance ( Allianz Australia). The bank used to offer credit card repayment insurance, however since 2020, it no longer provides new policies .


Wealth management

ANZ has a wealth management service called private bank. The service provides investment management services, lending services (for personal, investment and commercial property loans), foreign currency accounts and services for foreign investors.


Advertising and sponsorship

ANZ NZ sponsors a number of sporting entities and charities including
New Zealand Cricket New Zealand Cricket, formerly the New Zealand Cricket Council, is the governing body for professional cricket in New Zealand. Cricket is the most popular and highest profile summer sport in New Zealand. New Zealand Cricket operates the New Z ...
,
Netball New Zealand Netball New Zealand is the national body which oversees, promotes and manages netball in New Zealand, including the Silver Ferns. In 2019, 137,713 players were registered with Netball New Zealand, the governing body for organised netball in the co ...
,
Paralympics New Zealand Paralympics New Zealand (PNZ) is the National Paralympic Committee in New Zealand for the Paralympic Games movement. It oversees the means by which New Zealand participates at the Summer Paralympics and the Winter Paralympics. PNZ is affilia ...
, the
New Zealand Olympic Committee The New Zealand Olympic Committee (before 1994, The ''New Zealand Olympic and Commonwealth Games Association'') is both the National Olympic Committee and the Commonwealth Games Association in New Zealand responsible for selecting athletes to re ...
and the New Zealand Cancer Society. As of 2020, ANZ NZ donates NZ$15 million annually. In 2017, ANZ spent $25 million on advertising annually, higher than any other bank in New Zealand.


2016 Olympic Games

For the 2016 Olympic Games, the New Zealand Olympic Committee and ANZ NZ developed a cross platform mobile app to cover the game. During this advertising campaign, which featured heavy ANZ branding, the company experienced a 2 basis point increase in brand consideration.


COVID-19 pandemic

In response to the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
, ANZ NZ donated $2 million to the Women’s Refuge,
Age Concern New Zealand Age Concern is the banner title used by a number of charitable organizations (NGOs) specifically concerned with the needs and interests of all older people (defined as those over the age of 50) based chiefly in the four countries of the United King ...
, the
Salvation Army Salvation (from Latin: ''salvatio'', from ''salva'', 'safe, saved') is the state of being saved or protected from harm or a dire situation. In religion and theology, ''salvation'' generally refers to the deliverance of the soul from sin and its c ...
,
Red Cross The International Red Cross and Red Crescent Movement is a Humanitarianism, humanitarian movement with approximately 97 million Volunteering, volunteers, members and staff worldwide. It was founded to protect human life and health, to ensure re ...
and local charities in the Pacific, in addition to a $1 million grant to cricket and netball.


Controversies


Hisco personal expenses

An internal review, by ANZ's integrity unit, found that former CEO David Hisco was charging chauffeur driven cars and wine storage as expenses without authorisation. The report also found that the CEO "took actions that reduced the likelihood of the personal expenses being detected, and did not report the benefit associated with the expenses".


Hisco family house purchase

In 2011, ANZ purchased a property in Auckland for $7.5 million and rented it to its then-CEO David Hisco free of charge. In 2017, the property was sold to Hisco's wife for $6.9 million when the property's capital value was $10.7 million according to quotable value data. While a
Deloitte Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of profession ...
review cleared ANZ of wrongdoing, the Financial Markets Authority determined that the sale should have been disclosed in ANZ's financial statements.


RBNZ censuring

In May 2019, the
Reserve Bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
revoked ANZ's accreditation to model its own capital requirements due to "persistent failure in its control and attenuation process". Consequently ANZ is required to use a standardised model and to increase its minimum capital held by approximately 60% to $760 million. A Deloitte review found that "a historically complacent approach, the absence of a comprehensive compliance plan, diffused accountability and inadequate assurance processes, all contributed to the operational risk capital breach not being identified for more than five years". Although the RBNZ placed the responsibility on the directors, ANZ Chairman Sir
John Key Sir John Phillip Key (born 9 August 1961) is a New Zealand retired politician who served as the 38th Prime Minister of New Zealand from 2008 to 2016 and as Leader of the New Zealand National Party from 2006 to 2016. After resigning from bo ...
, maintains that the mistake was made by a junior employee.


Credit card repayment insurance

The Financial Markets Authority (FMA) accused ANZ NZ of issuing duplicate credit card repayment insurance policies to customers and failing to cancel policies for ineligible customers. The 390 customers with duplicate policies were still charged for the policies even though they provided no benefit. ANZ NZ acknowledged the bank took too long to report the issue to the FMA and attributed the issue to human error and systems issues. The bank has since issued an apology and compensation of NZD $440,000 to affected customers, however the bank still faces High Court proceedings from the FMA.


Criticism

ANZ has often been a finalist for the Roger Awards, which recognise "The Worst Transnational Corporation operating in New Zealand" and are run by CAFCA and GATT Watchdog. Reports released by CAFCA criticised ANZ NZ for: * The highest gross interest margin in 2009 (in the aftermath of the global financial crisis) out of the largest four banks operating in NZ (ANZ,
Westpac Westpac Banking Corporation, known simply as Westpac, is an Australian multinational banking and financial services company headquartered at Westpac Place in Sydney, New South Wales. Established in 1817 as the Bank of New South Wales, ...
,
BNZ Bank of New Zealand (BNZ) is one of New Zealand's Big Four (banking), big four banks and has been operating in the country since the first office was opened in Auckland in October 1861 followed shortly after by the first branch in Dunedin in D ...
and ASB Bank). ANZ had a gross interest margin of 35.4% compared to Westpac (31%) and BNZ (30.3%). * A high floating
mortgage A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...
rate of 6.06% in 2009 compared to Westpac (5.69%) and BNZ (5.59%).


See also

*
List of banks Lists of banks are contained in the following articles: By continent * List of banks in Africa – Each country in Africa has a list of banks operating in that country * List of banks in Asia – Asia has a list of banks operating in that co ...
*
List of banks in New Zealand This is a list of banks in New Zealand. Central Bank List of Banks See also * List of banks in Oceania References External links Reserve Bank of New Zealand - Register of registered banks in New Zealand {{Oceania topic, List of ba ...


References


External links


ANZ

OnePath

UDC
{{Authority control Banks established in 1951 Australia and New Zealand Banking Group Banks of New Zealand New Zealand subsidiaries of foreign companies New Zealand companies established in 1951