N.Z. licence sought by Aust. bank

Press, 12 October 1988, Page 35

N.Z. licence sought by Aust. bank

The State Bank of South Australia is seeking to become a registered bank in New Zealand to build on its existing business in the country. State Bank would concentrate on corporate and commercial banking, including a full foreign exchange operation, the managing director, Mr Tim Marcus Clark, said yesterday. It would not look at retail banking, but may consider starting an investment banking operation, he added. Branches would be set up in Auckland. Wellington and Christchurch, to serve corporate clients. Mr Marcus Clark said State Bank was particularly interested in supporting New Zealand companies which were considering investment, expansion or joint ventures in South Australia. The Reserve Bank has confirmed it is considering five further applications from prospective registered banks. New Zealand already has 15 registered banks, the most recent to be registered being Bankers Trust. Mr Clark said that State Bank held a positive view of New Zealand’s future. “We consider any recent economic problems to be very much short-term. New Zealand’s long term prospects are excellent and as a strong bank we always take the long term view. “We would very much like to be part of that future and are committed to backing New Zealand investment and commerce with a view to helping the realisation of your indicators for better times.” State Bank of South Australia was formed on July 1, 1984, as a result of the merger of The Savings Bank of South Australia and the former State Bank. Since then the bank has more than trebled its share of Australian trading bank advances. In mid-August the bank announced a record operating profit of $NZ78.15 million to June 30, 1988, on income which exceeded SNZI.2 billion for the first time. Total assets increased to more than SNZI3 billion, making it Australia’s seventh largest banking group. In August, 1988, the Overseas Investment Commission granted a member of State Bank Group a licence to operate in New Zealand. The company, Southstate Corporate Finance, Ltd (S.A.), is an associate of the bank’s wholly-owned subsidiary, Beneficial Finance Corporation, and operates from an office in Auckland. Another State Bank New Zealand operation is Oceanic Life, headquartered in Wellington, with an office in Auckland and one planned for Christchurch in the New Year. Oceanic will shortly launch a range of unit trusts.