Saturday 16th of April 2005

B U S I N E S S S T O R Y RELATED LINKS » Have your say » Subscribe to Archivestuff Mike Pero tells investors not to panic 16 April 2005 Mike Pero Mortgages (MPM) has told shareholders not to panic about their investment despite reports the firm would be hurt by a reconfiguration of broker commissions from the National Bank. Founder and second largest shareholder Mike Pero said yesterday he was frustrated that the market had "overreacted" to what was essentially an administrative change which MPM had supported. "It was a consultative process that the National Bank did with all the brokers," Mr Pero said. "And we accepted it." The announcement to the exchange earlier this week raised fears the National Bank would follow BNZ's lead and not use brokers at all but National has clarified that that is not the case. The group's shares closed this week at 65c, their lowest point since the Christchurch mortgage broking business floated in May last year. Mr Pero said the new commission rate structure was likely to have a small positive benefit for earnings rather than a negative impact. "It brings them into line with other banks for example ASB," Mr Pero said. "The company has never been doing better and last month was a record month for us." Mr Pero said the business was on track to meet full-year forecasts. "I guess we'll just have to prove that at the end of the year and I'm confident that we are on budget to do that," he said. Mike Pero's shares floated at 100c in late May but immediately slipped back and have not since returned to that price.