Rates Round Up

PGG Wrightson loses ground
PGG Wrightson Finance lost some ground in the battle for depositors' funds through the end of 2009, with deposits falling 8.6% to $278 million in the five months to November 31, according to its new prospectus.

The finance unit of PGG Wrightson blamed the decline on "reduced levels of new deposits and demand for call money."

Still, the reinvestment rate was maintained at 75%, which is "comparable with historical averages."

The company boosted its net interest income by almost 28% over the period, though its earnings were down 10% compared to the same period a year earlier, due to the introduction of the retail deposit guarantee scheme, and increased provisions for bad debt.