Rates Round Up

Kiwibank margins put under pressure in deposit rate war
Kiwibank's margins came under pressure in the first three months of the year as the deposit rate competition continued to weigh on the small lender which is trying to win customers from the big four Australian banks.

Kiwibank reported a margin of 1.14% over the period, according to KPMG's quarterly Financial Institutions Performance Survey.

"The competition for domestic deposits has reset margins at a level far below thjose experienced in previous years where Kiwibank was earning around 1.8%," the report said.

PGG Wrightson Finance looks to push out listed-bond maturity
PGG Wrightson Finance wants to extend the maturity of a listed bond that ends in October for another year after it was accepted into the government's extension to the retail deposit guarantee. Chief executive Mark Darrow said extending the bond, with the cover of the guarantee, was an appropriate way to reward investors' "ongoing support."