Superbank reportedly set for sale or closure

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.

GE this year made its first big push into the consumer finance market here 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 on-line.

- NZPA