Co-operative Bank to not be paying rebate for FY ended 31 March 2020

This decision was made after careful consideration by the Board of Directors and is consistent with the subsequent announcement by the Reserve Bank of New Zealand (RBNZ) last week restricting banks from making distributions such as dividends or rebates.

Due to the materially different economic environment New Zealand now faces as a result of the COVID-19 pandemic, the Board of Directors of The Co-operative Bank - a customer-owned bank - has agreed that the Bank will not be paying a rebate for the financial year ended 31st March 2020.

This decision was made after careful consideration by the Board of Directors and is consistent with the subsequent announcement by the Reserve Bank of New Zealand (RBNZ) last week restricting banks from making distributions such as dividends or rebates.

The RBNZ changes in relation to distributions were made to all banks’ conditions of registration to further support the stability of the financial system during this period of economic uncertainty caused by the COVID-19 pandemic. The RBNZ restrictions took effect from 2nd April 2020 and will remain in place until further notice, with the aim of relaxing them when the economic outlook has sufficiently recovered.

The Co-operative Bank’s Chairman, Sarah Haydon, says “we fully support the decisions made by the RBNZ to mitigate the impacts of the COVID-19 pandemic.”

“As a customer-owned bank, the rebate is just one way we benefit our customers. Our immediate focus is on supporting customers and our people through these unprecedented times, and beyond.”

“We will continue to support the financial wellbeing of Kiwis and if any of our customers are undergoing financial hardship, we encourage them to contact us. We have implemented a range of relief options to suit their needs, so we can ease some of the pressure during this tumultuous time.”

 “We expect the RBNZ to remove the condition of registration relating to distributions at some point in the future, at which time the Board will consider recommencing rebates.”