Originally Posted by
Xerof
percy, this may well be the case, but I wouldn't be shouting that from the rooftops. You forget that a lot of loan facilities are based on a margin over cost of funds, and borrowers will also be renegotiating borrowing costs lower to get their share of the margin improvement HNZ has been gaining. It's never a one way street. Stephens won't readily admit this unless directly asked.
I guess the next set of results will show how much margin improvement is captured, but to say it's 1% on 2 billion is a brave call
BTW, the correct term is "basis points"