Superbank... Any need to worry?

[interest_junkie]

I just read that they posted a 6.8 million dollar loss in the six months ending March 31st. That's a bigger loss than before!

If the losses keep growing, then at what point does St. George Bank Australia say "enough, that's it, close the place"... when there's an 8 million dollar loss in six months? 10 million?

[arco]

IJ

Probably not a question on the Forex Forum....but....

All the majors are doing special rates now, ASB, ANZ, NB,
etc....people perhaps feel more safe with a name they know,
and a retail site they can visit.

Just take your money out while you can and put it
in Xerofs fund of funds....or even under the mattress

.....or maybe transfer it it my account
....I can even turn water into wine you know ;)

[Xerof]

quote:I can even turn water into wine you know

Jesus, can you? [^][^]

[miner]

Sounds good but the wine taste's like toe jam after he walked on it;):D

[Jay]

This just in from Stuff.co.nz

Any bets on whom may purchase [?], I cannot see them "closing it"
My Guess would be GE finance as they start to bild a base here.
Unless a bank or two fight over it to keep ahead of the competition
------------------------------------------------
Superbank set for sale or closure - report
26 July 2006

Superbank is due shortly to be sold or closed due to losses, The Independent Financial Review reported today.


It said chief executive James Munro had been on "gardening leave" for two weeks.

The bank's liquidity is not in question but it has chalked up losses of $40 million in the three years since it opened.

The bank is a joint venture between Australia's fifth-largest retail bank, St George Bank, and supermarket cooperative Foodstuffs. Foodstuffs and Superbank did not immediately return calls to NZPA.

St George managing director Gail Kelly said in December Superbank was under review for sale because of tightening economic conditions and competition that had squeezed margins.

Two months ago, buyers were reported in the Australian media to be queuing up for Superbank.

These included US financial services giant GE, Westpac Bank and the Commonwealth Bank of Australia-owned ASB.

AdvertisementAdvertisementGE this year made its first big push into the consumer finance market in New Zealand when it purchased PRG Finance Group from entrepreneur Eric Watson's PRG for $165 million.

At the end of March, Superbank's retail deposits stood at $523m, with residential loans at $504m.

Superbank was launched in 2003 and promoted, through Foodstuff's New World and Pak 'N Save chains, the idea of customers doing banking online.

[fundir]

I've opened one of the Rabobank investment accounts and found it good some far. Haven't brought any of the funds or term deposits yet but it easy to move money to/from the call account.

But word is trade sale is the most likely outcome ofr superbank.

[coge]

Problem is for Superbank they are way overweight in deposits. High deposit rates are good for creating a quality client base, but such strategies are unsustainable beyond short term. Seems to have been a lack of initiative on the management side.

Folks withdrawing their funds will beneficial to Superbanks balance sheet.

Don't think Rabobank will make the same mistake.