Category: Business

Source: Radio New Zealand

The government has accepted most of the recommendations out of a banking inquiry to improve competition in the sector.

A cross-party inquiry examining the state of banking competition made 19 suggestions in its report, released in August.

The government has accepted or partially accepted all the recommendations.

• Standardise credit information and make it easier to compare loans. Response: Agree.
• Open the door to more overseas banks and fintechs. Response: Agree.
• Strengthen Kiwibank through investment. Response: Agree.
• Review fees and profits on everyday accounts. Response: Agree.
• Revisit Reserve Bank prudential settings. Response: Partially agree.
• Evaluate capital settings. Response: Agree.
• Broaden the “regulatory sandbox” trial. Response: Agree.
• Cut Council of Financial Regulators overlap. Response: Agree.
• Make climate lending rules clear and consistent. Response: Partially agree.
• Push for real-time payments. Response: Agree.
• Improve Payments New Zealand. Response: Agree.
• Address limits on growth of non-bank deposit. Response: Agree.
• Cease capital increases for banks. Response: Agree
• Formal disclosure of factors. Response: Agree
• Set voluntary Māori banking services standards. Response: Agree.
• Remove anti-money-laundering (AML) roadblocks for Māori land trusts. Response: Agree
• Enable Māori co-investment in infrastructure. Response: Agree.
• Create Māori-focused lending products. Response: Agree.

Finance Minister Nicola Willis said the select committee’s findings echoed many of the findings of the Commerce Commission’s report on personal banking services last year.

“The inquiry’s findings highlighted concerns about the high levels of banking profitability and market concentration, barriers to entry for other players, and regulatory settings.

“The government has been progressing all the recommendations in the Commerce Commission’s report. They include giving Kiwibank’s parent company the go-ahead to raise additional capital and requiring the Reserve Bank to place greater emphasis on banking competition across a range of policies and actions.”

Minister of Commerce and Consumer Affairs Scott Simpson said he would be writing to banks encouraging them to standardise financial information and use digital technologies to help customers compare products and loan options across banks, and asking them to disclose profitability on transaction, on-call and savings accounts.

“I will also be writing to the Financial Markets Authority asking it to consider broadening its regulatory sandbox trail which allows firms to test innovative products and services in a controlled environment.

“Work is also underway on a single licensing model to cut red tape for innovative financial services.

“This government is committed to driving competition in the banking sector, encouraging innovation and delivering a better deal for consumers.”

“Monitoring and reporting on the committee’s recommendations will be coordinated by the Treasury.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Accounting software company Xero has had a significant increase in profit on the back of increased users and revenue.

Key numbers for the six months ended September compared with a year ago:

• Net profit $134.8m vs $95.1m
• Revenue $1.19b vs $996m
• Subscribers 4.59m vs 4.19m
• No dividend

The Wellington-based but Australian-listed company reported increased earnings from individual subscribers, while it moved to build on its acquisition of US payments company Melio.

Chief executive Sukhinder Singh Cassidy said the company had looked to improve revenue generation despite a slowing in subscriber growth.

“Xero’s H1 FY26 results reinforce our ability to deliver as we continue to do what we said we would do, in line with our strategy.

“We have continued to deliver above ‘rule of 40’ outcomes and generate significant cash, underpinned by our disciplined allocation of capital.”

The “rule of 40” is an industry benchmark which combines revenue growth and its profit margin and should be at least 40 percent. It is regarded as an indication of a software-as-a-service company’s financial health.

Xero’s measure increased to 44.5 percent from 43.9 percent a year ago.

Singh Cassidy said the acquisition of US accounting platform Melio Payments would be a significant driver of future growth.

“The acquisition is a significant milestone, creating opportunities to accelerate growth and long-term value. “

She said Xero was also looking to its AI-powered JAX product, which she dubbed a financial superagent that would automate core accounting tasks while bringing efficiencies.

“We see generative AI technology as a significant opportunity to create more value for both our customers and internally at Xero.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Infrastructure investor Infratil has reported a strong first-half net profit, with revenue up more than a third to $2 billion.

It said underlying profit rose 7 percent, despite New Zealand’s economy remaining relatively subdued throughout the period ended in September.

Key numbers for the six months ended September compared with a year ago:

• Net profit $631.5m* vs net loss $206.4m**
• Revenue $1.993b vs $1.482b
• Underlying profit $662.4m vs $68.8m
• Total debt $2.62b vs $2.19b as at 31 March
• Total asset value $19b versus $18.3b
• Interim dividend 7.25 cents a share vs unchanged
• *Reflected sale of Manawa Energy resulting net surplus of $606m
• **Net loss reflected a number of one-time costs and a revaluation gain in the year earlier.

Infratil chief executive Jason Boyes said profit growth was largely driven by United States-based Longroad Energy, Australasia’s CDC data centre business, while capital expenses fell $52m to $1.14b on the year earlier.

“Digital and renewable energy thematics are stronger than ever, with CDC and Longroad building strong earnings momentum on the back of new waves of demand,” Boyes said.

“CDC has recently announced 140 megawatts of contracts and Longroad Energy reached financial close for 925MW of new projects.

“Gurīn Energy in Asia is another investment poised for growth and we’re always scanning for other attractive new growth sectors.”

He said the company was about 58 percent on its way to meeting its $1b divestment target, with sale agreements in place for RetireAustralia, Fortysouth and a legacy property asset. A strategic review of Qscan is also underway.

“Our focus is on simplifying our current portfolio and reinvesting in areas with strong thematic drivers, to position Infratil for continued growth and shareholder returns.”

New Zealand business performance

Despite the weak New Zealand economy, Boyes said Infratil’s New Zealand businesses had been largely resilient.

Wellington Airport reported 4 percent growth in underlying profit with international passengers numbers up 7 percent, while domestic passenger numbers fell 5 percent.

Telecommunications company One NZ, which accounted for about 58 percent of underlying profit, saw revenue rise by $14 million on the year earlier.

“Revenues have lifted through a mix of pricing and service initiatives, including the One Wallet loyalty programme and SpaceX text services – with more than 6 million texts now sent via the exclusive satellite service.”

The RHCNZ Medical Imaging business saw a pick-up in scans, though underlying profit fell on lower margins and cost inflation. However, Boyes said the outlook was more positive for the second half.

“This includes creating a standalone teleradiology service provider that will include staff and assets from Infratil’s Australian diagnostic imaging investment, Qscan, ” he said, adding its Qscan’s underlying profit rose 11 percent, with a positive mix of imaging demand and pricing changes.

Boyes said the company was poised for long-term growth, with its increased investment in Contact Energy expected to generate financial flexibility for the firm.

Underlying profit guidance for the full year ending in March was between $1b and $1.05b on a like-for-like basis, or between $960m to $1b following the sale of RetireAustralia and Fortysouth.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The insurance ombudsman is urging customers not to embellish claims for flood damage.

The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme), which reviews insurance complaints, said with more frequent flooding events, people could risk their recovery by falsifying statements.

Insurance & Financial Services Ombudsman, Karen Stevens, said it’s important to know the consequences of making a false statement on an insurance claim.

“Providing false information can result in your whole claim being declined, not just the items that were inaccurately included. And if you’re found to have committed fraud, then you’ll likely not be able to get insurance in future,” she said.

Stevens said if people are unsure about the details, they should check before submitting their claim.

“Its important to remember that insurance relies on trust. Honesty is always the best policy-especially when so many are relying on insurance to recover from natural disasters,” Stevens said.

The warning follows a recent investigation where an Auckland woman’s claim for flood-damaged household contents was declined.

IFSO Scheme said after the Auckland floods in January 2023, the woman claimed that 43 household items-including large pieces of furniture-had been damaged and thrown away.

But, the insurer’s investigation revealed that some of these items were actually stored at a nearby storage facility.

When questioned, Heather provided a revised list with only 10 items.

The insurer’s findings were that the false statements had been made in support of the claim and, under the policy’s terms, declined the woman’s claim and cancelled her policy.

The customer subsequently made a complaint to the IFSO Scheme, asking them to review the case.

She claimed family members had helped move and dispose of the household items and that she had not visited the storage unit herself.

Despite that, the IFSO Scheme found it was “deliberately reckless” for the woman to claim the items had been thrown out and seek compensation without taking reasonable steps to verify this.

The complaint was not upheld by the IFSO Scheme.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Former Auckland financial advisor David McEwen has pleaded guilty to all charges for breaching a banning order imposed by the financial markets regulator.

The Financial Markets Authority (FMA) previously issued warnings about financial products and related advice provided by McEwen and his associated entities.

It issued a stop order against McEwen in 2023, and criminal charges were filed against him in December 2024 for breaching the stop order.

FMA head of enforcement Margot Gatland said the agency continued to recommend investors contacted by McEwen or related entities report it to the FMA.

“Ultimately, confident participation in the financial markets can only exist if an intrinsic level of market integrity exists, which stop order provisions serve to facilitate,” Gatland said.

The FMA also previously told former or existing clients of McEwen or subscribers to his publication “McEwen Investment Report” to check their credit and debit card statements for possible unauthorised payments.

The FMA said it received complaints from his clients suspecting card payments were made without their permission.

McEwen is due to be sentenced on 14 January.

McEwen was a business journalist prior to his investment career, and worked for well-known publications, including the Financial Times, National Business Review and Reuters.

He later founded his advisory firm Stockfox, and was a director of McEwen & Associates.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Tactics like countdown timers and messages showing items fast running out stock when buying things online are being labelled as insidious by Consumer.

It wants such practices banned, saying their use is completely unregulated in New Zealand.

The strategies are known as “dark patterns” and include the likes of hidden fees and making subscriptions hard to cancel.

Consumer surveyed some 1500 New Zealanders and four about a quarter had kept online subscriptions longer than they wanted, while 40 percent said they ran into problems cancelling something because of dark patterns.

“They’re just things that have crept into the online sphere and sort of taken over, they’re kind of ubiquitous now,” Consumer senior investigative journalist Chris Schulz said.

He told Nine to Noon everyday purchases were riddled with dark patterns so people were manipulated and manoeuvred into doing things they might not want to.

Consumer first started looking into the tactics in April and conducted sit-down interviews with some people after its survey.

“And we just sat there and watched them and talked with them as they did it,” Schulz told Nine to Noon.

“So that was booking accommodation through Booking.com, buying concert tickets through Ticketmaster, cancelling a HelloFresh meal delivery subscription and then purchasing flights through Jetstar,” he said.

“And these four seemingly typical things that we all do every day, they’re riddled with dark patterns now.”

Schulz said Booking.com had “scarcity queues” he said, showing messages like “only one left”.

He said Ticketmaster added hidden fees and had countdown timers that pushed people to make quick purchases.

HelloFresh, he said, had a four- to five-step cancellation process, while Jetstar flights had pre-selected options or pushes toward other options.

“People don’t like them… only 6 percent of respondents came back and said that dark patterns are helpful in any way, so people overwhelmingly don’t like them,” Schulz said.

On Nine to Noon he detailed one case study of an Auckland woman buying concert tickets.

“It was her first concert experience since Covid, she was really looking forward to seeing Pink,” he said.

“So she jumped online, got on the pre-sale and she thought these tickets were going to be $200 each, and by the time she got to the checkout she was ending up paying twice that – they were going to be $400, so for two tickets for her it was $800.

“And she told us that she felt pressured because of the countdown time – she did not want to miss out on these tickets,” Schulz said.

He said the woman said the purchase was “a sad story” and it ended up ruining her experience.

With HelloFresh, Schulz said a lot of people recognised they were about to “endure something pretty traumatic” when it came to cancelling.

“There are multiple persuasive techniques they use to try to get you to stay on – whether that is pausing your delivery service, from offering you points or discounts for your friends, like it is just page after page and it takes so much time and you need to have energy to do this because it is so time consuming.

“And because we do not have any kind of restriction or legislation banning these practices, they have just been allowed to spread.”

Online tactics not regulated

Schulz said there was little data on how much dark patterns were costing people.

“You can use a website from overseas and a consumer here in New Zealand will have a completely different experience as someone where there are rules and regulations in force, in Europe perhaps, where things are a little more stringent and they are sort of leading the way on this,” he said.

Schulz said Consumer was calling for the same in New Zealand, and that Australia was looking to ban a lot of the practices.

“So we could ban unfair trade, these could fall under unfair trading practices, the Minister of Commerce and Consumer Affairs could ban them.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

• Commerce Commission rejects interim bid for banks and some retailers to negotiate with Armourguard
• Interim bid was over cash transit services
• Commission intends to make a final decision at a later date

The Commerce Commission has declined an interim request by the Banking Association to negotiate collectively on behalf of the banks and some retailers, for cash-in-transit services with Armourguard.

The Commission was not satisfied that the benefits of collective bargaining by the banks would outweigh the negatives, although it intends to make a final decision at a later date.

It was a split decision, with one of the three commissioners dissenting.

“All commissioners agreed that this was a finely balanced decision,” Commission chair John Small, who voted to decline, said.

“However, on the information provided the majority of commissioners are not satisfied that the potential benefits of permitting collective bargaining would outweigh the potential detriments,” Small said.

Commissioner Bryan Chapple also declined the request, while associate commissioner Nathan Strong dissented.

“Commissioner Strong’s dissenting view is that granting interim authorisation and allowing the participants to begin collective negotiations would preserve the potential for the benefits of collective negotiation to be realised should the Commission grant full authorisation, and that this outweighed the potential detriments of interim authorisation,” Small said.

Armourguard (owned by US-based Evergreen International) is the only supplier of specialised cash transport services, after the Commission allowed Evergreen to buy out its only competitor in 2024.

Armourguard had previously warned against the banks’ application.

“On one side, you have New Zealand’s last remaining cash services provider, which has been carrying heavy losses while continuing to invest in the nation’s resilience,” Armourguard chief executive Shane O’Halloran said in September.

“On the other, a group of banks that make billions each year and now want permission to act as a cartel to drive costs down for banks as opposed to the broader market,” he said.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Infrastructure investor Infratil has reported a strong first half net profit with revenue up more than a third to $2 billion.

It said underlying profit rose 7 percent, despite New Zealand’s economy remaining relatively subdued throughout the period ended in September.

Key numbers for the six months ended September compared with a year ago:

• Net profit $631.5m* vs net loss $206.4m**
• Revenue $1.993b vs $1.482b
• Underlying profit $662.4m vs $68.8m
• Total debt $2.62b vs $2.19b as at 31 March
• Total asset value $19b versus $18.3b
• Interim dividend 7.25 cents a share vs unchanged
• *Reflected sale of Manawa Energy resulting net surplus of $606m
• **Net loss reflected a number of one-time costs and a revaluation gain in the year earlier.

Infratil chief executive Jason Boyes said profit growth was largely driven by United States-based Longroad Energy, Australasia’s CDC data centre business, while capital expenses fell $52m to $1.14b on the year earlier.

“Digital and renewable energy thematics are stronger than ever, with CDC and Longroad building strong earnings momentum on the back of new waves of demand,” Boyes said.

“CDC has recently announced 140 megawatts of contracts and Longroad Energy reached financial close for 925MW of new projects.

“Gurīn Energy in Asia is another investment poised for growth and we’re always scanning for other attractive new growth sectors.”

He said the company was about 58 percent on its way to meeting its $1b divestment target, with sale agreements in place for RetireAustralia, Fortysouth and a legacy property asset. A strategic review of Qscan is also underway.

“Our focus is on simplifying our current portfolio and reinvesting in areas with strong thematic drivers, to position Infratil for continued growth and shareholder returns.”

New Zealand business performance

Despite the weak New Zealand economy, Boyes said Infratil’s New Zealand businesses had been largely resilient.

Wellington Airport reported 4 percent growth in underlying profit with international passengers numbers up 7 percent, while domestic passenger numbers fell 5 percent.

Telecommunications company One NZ, which accounted for about 58 percent of underlying profit, saw revenue rise by $14 million on the year earlier.

“Revenues have lifted through a mix of pricing and service initiatives, including the One Wallet loyalty programme and SpaceX text services – with more than 6 million texts now sent via the exclusive satellite service.”

The RHCNZ Medical Imaging business saw a pick-up in scans, though underlying profit fell on lower margins and cost inflation. However, Boyes said the outlook was more positive for the second half.

“This includes creating a standalone teleradiology service provider that will include staff and assets from Infratil’s Australian diagnostic imaging investment, Qscan, ” he said, adding its Qscan’s underlying profit rose 11 percent, with a positive mix of imaging demand and pricing changes.

Boyes said the company was poised for long-term growth, with its increased investment in Contact Energy expected to generate financial flexibility for the firm.

Underlying profit guidance for the full year ending in March was between $1b and $1.05b on a like-for-like basis, or between $960m to $1b following the sale of RetireAustralia and Fortysouth.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The author of new research looking into the benefit of a kids’ KiwiSaver scheme says if all children were enrolled from birth, they could have $10,000-20,000 in savings by the time they reach adulthood.

The report outlines several possible models, including a government kickstart and matching annual contributions to help children build savings from an early age.

Max Rashbrooke, co-founder of the Institute for Democratic and Economic Engagement Analysis, told Morning Report that as a country we’re not saving enough.

“We thought that an elegant but practical way to solve that problem, as well as building a savings culture and trying to improve the future prospects for our young people, would be to set up some kind of kids’ KiwiSaver scheme.

“I think the core of it would be to imitate the things that have made KiwiSaver itself successful as much as possible,” he said.

“So there’d be a kickstart for parents to start saving, maybe $1000. Then you’d have the government matching small amounts of parental savings.”

Rashbrooke said there could be government contributions for those that couldn’t afford to contribute to ensure no one missed out.

Six scenarios were modelled in the report with different levels of contributions from both the government and parents.

The first-year cost to the government ranged between $20 million to $80m across scenarios.

Rashbrooke said in 18 years the total savings could plausibly be somewhere around $10 billion to 13b in total.

There have been various attempts to introduce similar schemes around the world.

In the United States and Hungary there were “baby bonds”, while the United Kingdom previously had “child trust funds”.

Meanwhile, domestically Ngāi Tahu operates a matched savings scheme, Whai Rawa, which runs similarly to the proposed Kids KiwiSaver scheme.

As of early 2025, Ngāi Tahu’s scheme has over 35,000 members and $165 million in funds under management.

Ngāi Tahu has contributed over $75m in matched savings, payments to newborns and annual distributions.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Proponents of a proposed Super Liquor in Lake Hāwea have insisted they are acting in the town’s best interests, as their clash with local residents enters the hearing room.

There were a record 538 submissions opposing a liquor licence for the store, which would be the town’s first standalone bottle store, and two in support.

A three-day District Licensing Committee hearing began on Wednesday afternoon at the Lake Wānaka Centre, where Keyrouz Holdings Ltd laid out its case for a new Super Liquor store under the watchful eyes of more than a dozen Lake Hāwea residents.

The company operates Super Liquor franchises in Cromwell, Alexandra, Wānaka, Queenstown and Lorneville, near Invercargill, and also owns the Five Stags restaurant and The Gate Hotel in Cromwell.

Gate Group chief executive Glen Christiansen said the town was growing and residents could be assured Super Liquor was responsible and community-focused.

“I do believe that Lake Hāwea will get a bottle store at some point, and that we are the suitable operator due to our great history and strong operational standards, which are held by our staff and guided by Super Liquor Holdings,” he said.

The company earlier secured building consent to construct the outlet in the Longview subdivision – a fast-developing pocket of the town with a playground, school bus stop, and new homes.

Locals argued the proposed site was too close to children and sent the wrong signal about the town’s priorities.

Keyrouz Holdings director Alan McKay said the company was confident it could work with residents to find common ground.

“Over the last 25 years we’ve gained considerable experience, and we have extremely competent people working for us,” he said.

“It takes a bit of confidence to put a new business in the middle of a vacant paddock. But it is a commercial area, and what we’re doing I think will attract other businesses, which will eventually help the community.”

Outside the hearing, resident Lisa Riley said she firmly disagreed.

“The growth is inevitable, but I think Lake Hāwea needs to have the infrastructure in place first – things that so many other towns and cities take for granted… medical services, public transportation, police. When someone gets hurt in our community, they have to be airlifted out by helicopter,” she said.

“When this first happened, some people said they thought it was a joke, like a bad April Fool’s joke, because when you look at the site and you look at the proximity to the family-friendly neighbourhood, it just absolutely makes no sense whatsoever. They can go on about it being a commercial centre. It is incredibly small… it was not meant for large liquor chains to come in and take up space.”

Resident Andre Meyer said it was entirely backwards for the company to seek a liquor licence before laying a single brick.

“The application should have never got this far,” he said.

“The land… it’s simply still just a paddock. It’s fairly straightforward – my opinion is they don’t have a chance.”

Counsel for Keyrouz Holdings, John Young, said the company was simply carrying out its due diligence.

“I’ve been at hearings and my clients have built a bar, done everything, and they’ve had objections, and they’ve been accused of being cocky and presumptuous. So you can’t win either way sometimes,” he said.

He said the majority of objections were in template form, and cited an earlier Alcohol Regulatory and Licensing Authority decision suggesting such submissions might not reflect the authors’ genuine views.

“Such objections suffer from a lack of author authenticity and are likely to carry less weight… What I want to say about that point though is that I can assure the committee my client is here today with an open mind and here to listen.”

The debate took on an added edge after one of the company’s Super Liquor stores in Queenstown’s Remarkables Park was ram-raided in the early hours of Monday morning.

Young told the committee it was an unfortunate incident.

“No one wants it to happen. The police have responded quickly and appear to have apprehended those responsible. And the applicant cooperated with the police as fully as it could. The store was remedied and ready to trade at 9am on the day of the incident so the community was not exposed to the damage that had been done,” he said.

The hearing was expected to run for at least three days, with objectors due to take the stand on Thursday.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand