KEY POINTS:
State owned Kiwibank, which is largely funded from relatively cheap domestic sources including retail deposits, is wresting market share from its major rivals and growing its mortgage book at its fastest rate ever.
The bank's recently released September quarter General Disclosure Statement shows its mortgage book grew by $419 million to $5.53 billion over the period against an increase of $262 million during the June quarter.
Kiwibank spokesman Bruce Thompson yesterday confirmed that was the fastest rate of growth enjoyed by the bank in its seven year history.
"We had a very strong quarter. We took a very aggressive position and made a number of interest rate cuts over that period and were successfully in the market."
Kiwibank's growth, against the overall market which is largely static at present, suggests it is at the expense of its big bank rivals who source much of their funding on offshore markets where money remains relatively scarce and expensive.
