TSB Bank

What TSB Bank does

TSB Bank Limited is a New Zealand-incorporated retail and commercial bank headquartered in New Plymouth, Taranaki, founded in 1850 and 100% owned by the philanthropic Toi Foundation, which has held ownership since 1988. Under a 'profit-for-purpose' model, retained earnings are reinvested into New Zealand communities rather than distributed externally; for the year ended 31 March 2026 the bank reported Net Profit Before Tax of NZD 63.3 million, up 10% year-on-year, on total assets of approximately NZD 9.5 billion, with a Net Interest Margin of 2.26% and Return on Equity of 5.7%.

The product portfolio spans personal and business banking: transaction accounts (Connect Plus), savings (WebSaver), debit Mastercards, Low Rate and Platinum credit cards, fixed and variable home loans (terms 6 months to 5 years), term deposits, KiwiSaver, overdrafts, and business lending including commercial property finance. Distribution is multi-channel, comprising roughly 45 branches, Banking Hubs, and Smart ATMs across New Zealand, an iOS/Android mobile app with biometric login (added June 2026), online banking, and a Taranaki-based Customer Engagement Centre that resolves 89% of calls on first contact. The technology stack integrates Adobe Customer Journey Analytics (partnered March 2026) for cross-channel personalization, and 98% of customer transactions are completed through digital channels.

Revenue is generated primarily through net interest income on lending products, supplemented by account/transaction/card fees, insurance referral commissions from Tower (general insurance), Chubb Life, and AIA, and FX margin via a Travelex partnership. In June 2026, owner Toi Foundation agreed to sell TSB to Heartland Group Holdings for NZD 620 million, creating 'TSB Heartland Bank' with over NZD 18 billion in combined total assets and approximately NZD 34 million of expected annual pre-tax synergies, pending regulatory and shareholder approvals with target closing in December 2026.

Name

TSB Bank

Legal name

TSB Bank Limited

Website

https://tsb.co.nz

Company type

Private

Founded year

1850

Operating status

Operating

Headcount range

501–1,000 employees

Short description

TSB Bank Limited is a New Zealand-owned retail and SME bank headquartered in New Plymouth, founded in 1850 and 100% owned by the philanthropic Toi Foundation, serving personal and business customers nationwide through a 45-branch network, digital and mobile channels, and home loan, credit card, savings, KiwiSaver, and commercial property finance products.

Ownership category

akta.pro rank

Product category

Retail Banking

NAICS

Commercial Banking (52211), Depository Credit Intermediation (5221)

SIC

National Commercial Banks (6021)

akta.pro primary industry

Branch & In-Person Banking (Teller/ATM Networks) (FSABAAAE)

Keywords

• Retail banking services
• Home loan products
• Business lending
• Term investments
• Digital banking

Headquarters

HQ city

New Plymouth

HQ country

New Zealand

HQ region

Oceania

Offices7 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales, Supply Chain, Others

Revenue model

1. Net Interest Income: Primary revenue stream from interest rate margins on home loans, personal loans, credit cards, business loans, and commercial property finance. The bank generated a Net Interest Margin of 2.26% for the year ended March 2026. Net Interest Income grew as a result of disciplined cost management and a favourable interest rate environment.
2. Fee Income: Revenue from account service fees, transaction fees, card fees (annual fees on credit cards), overdraft fees, and early repayment fees on fixed-rate home loans. Connect Plus account offers zero monthly fees on base account with transaction fees applying in specific circumstances.
3. Insurance Commission Revenue: Commission revenue from referring insurance products. TSB partners with Tower (general insurance: home, contents, car, boat, landlord), Chubb Life (life and living insurance), and AIA (tailored loan and mortgage protection insurance). TSB receives commission from each sale made through these referral partnerships.
4. Foreign Exchange Services: Revenue from foreign currency exchange services through partnership with Travelex, including international payment (telegraphic transfer) fees charged to customers sending money overseas or buying foreign currency.

Pricing tiers

Go-to-market motion1 record

Distribution channels9 records

Marketing channels8 records

Core offering

TSB Bank provides a comprehensive suite of personal and business banking products including everyday transaction accounts (Connect Plus), savings accounts (WebSaver), credit and debit Mastercards, home loans with fixed and variable rate options, term investments, KiwiSaver, overdrafts, and business banking accounts and loans. It also distributes general and life insurance through referral partnerships with Tower and Chubb Life, foreign exchange through Travelex, and delivers services across a nationwide branch network, Banking Hubs, Smart ATMs, online banking and a mobile app.

Product overview

TSB Bank is a New Zealand-owned regional bank offering a comprehensive suite of personal and business banking products. The core personal banking portfolio includes everyday transaction accounts (Connect Plus), savings accounts (WebSaver), and youth accounts; debit and credit cards including Low Rate and Platinum Mastercards; home loans with fixed and variable rate options; and term investments and KiwiSaver for savings growth. Business banking encompasses everyday accounts, business savings (On Call), commercial loans, commercial property finance, and business credit cards. TSB also provides digital services through online banking and mobile applications with biometric login capabilities. Insurance products are offered through partnerships with Tower (general insurance) and Chubb Life (life insurance). The bank operates a network of branches, Banking Hubs, and Smart ATMs across New Zealand, emphasizing personalized service and community focus as a profit-for-purpose organization owned by the Toi Foundation.

Differentiator

Problem solved

Functional benefit

Products and services

• Connect Plus An everyday transaction account for personal customers with no account fees and unlimited transactions, accessible via online banking, mobile app, ATMs, and branches.
• WebSaver A personal savings account paying interest on all balances with no withdrawal conditions, accessible through online banking and the TSB mobile app.
• Youth Account An all-in-one transactional and savings account for customers under 18 years of age.
• Overdraft A flexible credit facility linked to an everyday account that provides access to additional funds up to an approved limit to manage unexpected expenses.
• Debit Mastercard A debit card linked to a TSB everyday account for online shopping, in-store tap-to-pay and ATM cash withdrawals using the cardholder's own funds.
• Low Rate Mastercard A credit card charging 11.95% p.a. on purchases and cash advances with up to 55 days interest free, a $500 minimum credit limit and a $20 annual fee, with mobile phone, price and purchase protections.
• Platinum Mastercard A premium credit card charging 20.95% p.a. on purchases, with a $90 annual fee, $8,000 minimum credit limit, cashback rewards and included travel insurance.
• Home Loans Residential mortgage products with fixed-rate terms from 6 months to 5 years and variable rate options for buying, building, switching or topping up home loans, supported by Mobile Mortgage Managers in regional areas.
• Term Investments Term deposits offering fixed interest rates for terms from 30 days to 5 years, with a minimum deposit of $1,000 and interest paid every six months or on maturity.
• KiwiSaver A retirement savings scheme for New Zealanders to save for retirement or a first home purchase, with potential first home withdrawal after three years of contributions.
• Business Everyday Account A business transaction account with no monthly or transaction fees, accessible via Debit Mastercard, online banking and the TSB mobile app.
• Business On Call Account A flexible business savings account that earns interest daily on balances over $0, paid monthly, without fixed-term constraints.
• Business Loans Tailored term lending solutions for businesses to support growth and cashflow management.
• Commercial Property Finance Flexible term lending and development finance for commercial property purchases, including investments, mixed-use projects and property development.
• Business Mastercard A business credit card that enables secure team purchasing and cashflow management with dedicated business expense controls.
• Foreign Exchange Foreign currency purchase via Travelex partnership (online click-and-collect or in-store) and international payments (telegraphic transfers) to and from overseas.
• Tower General Insurance Referral Referral service for general insurance products (house, contents, car, boat and rental property) underwritten by Tower Insurance.
• Chubb Life Insurance Referral Referral service for life and living insurance products underwritten by Chubb Life Insurance New Zealand.
• Online Banking A digital banking platform for managing accounts, reviewing transactions, paying bills, transferring money, managing payees, opening accounts and downloading statements via desktop or laptop.
• TSB Mobile App A mobile banking application for iOS and Android devices enabling balance checks, payments, transfers, alerts, card control and biometric login.

Quantifiable outcome

• 89% of customer calls resolved on the spot (first-call resolution, September 2025 to February 2026)
• +4 more outcomes

Named customers4 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature4 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• Heartland Bank (Heartland Group Holdings)coreStrategic or Co-development Partner · 1 June 2026Proposed merger creating TSB Heartland Bank Limited. Toi Foundation (TSB's 100% owner) agreed to sell TSB to Heartland Group Holdings for $620 million. The merged entity would have over $18 billion in total assets, become New Zealand's seventh-largest bank, with ~$15 billion in total assets and annual pre-tax synergies of ~$34 million. Toi Foundation would reinvest with a 17.5% shareholding in the combined entity. Deal expected to close December 2026 pending regulatory and shareholder approvals.
• TravelexminorGTM or Marketing Partner · 17 March 2026TSB customers can buy foreign currency through Travelex both online (click and collect) and in-store at Travelex locations across New Zealand. TSB customers access special rates using promo code TRAVELEXTSB at checkout. Travelex also handles foreign currency buy-back for returning travellers. This is a referral-style partnership providing added convenience to TSB's existing customers.
• AdobecoreTechnology or Integration · 17 March 2026TSB partnered with Adobe to implement digital solutions for enhanced customer experience through personalisation and data-driven engagement. The bank uses Adobe Customer Journey Analytics to unify cross-channel data, significantly reducing data latency and increasing the scale of personalised customer interactions, resulting in higher product uptake and improved operational efficiency. This forms part of TSB's strategy to become the digital bank of choice with a human heart.
• Santander UK (for UK TSB)coreStrategic or Co-development Partner · 24 February 2026Note: This pertains to UK TSB, a separate entity from TSB New Zealand. Santander UK completed acquisition of TSB UK for approximately £2.9 billion in April 2026, creating the UK's third-largest personal current account provider with ~28 million customers. This merger is separate from the TSB New Zealand context.
• Tower InsurancecoreGTM or Marketing PartnerTSB partners with Tower for General Insurance products including home, contents, car, boat, and rental property cover. TSB refers customers to Tower and receives commission on sales. Tower's Quote to Buy tool is operated by Tower Limited, with TSB acting as referring partner. Tower underwrites all contracts and holds an A+ (Strong) financial strength rating from Standard & Poor's.
• Chubb Life Insurance New ZealandcoreGTM or Marketing PartnerTSB partners with Chubb Life for life and living insurance products, providing protection for customers and their whanau financially if something serious happens to their health or life. TSB refers customers and receives commission on policies sold. Chubb Life underwrites all contracts and is regulated under New Zealand insurance law.
• AIA New ZealandminorGTM or Marketing PartnerTSB refers customers to AIA for tailored loan insurance, mortgage repayment insurance, and guaranteed term life products. Customers can access AIA products through TSB Customer Engagement Centre (0800 872 274). TSB receives commission on referred sales.

Scale indicators9 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Nelson Building Society: Nelson Building Society is a small regional New Zealand mutual building society offering savings, lending, and community-focused banking. Closely comparable to TSB in sub-scale regional banking model, and notably co-admitted with TSB in the responsible lending breach settlement — indicating similar scale-related compliance constraints.
• SBS Bank: SBS Bank (Southland Building Society) is a New Zealand mutual-owned challenger bank with regional roots in Southland, offering personal and business banking. Comparable to TSB in mutual/community values positioning, sub-Big 4 scale, and regional heritage combined with nationwide product ambition.
• The Co-operative Bank: The Co-operative Bank is a New Zealand values-based challenger bank owned by its customers, offering everyday accounts, mortgages, and personal banking with a strong ethical/sustainability focus. Closely comparable to TSB's profit-for-purpose brand positioning and sub-Big 4 scale.
• Kiwibank: Kiwibank is New Zealand's state-owned challenger bank, offering a similar full-service retail and business banking proposition targeting Kiwis who want a NZ-owned alternative to the Big 4. Comparable customer segments, product breadth, and values-based positioning as TSB, with overlapping geographic footprint nationwide.
• Heartland Bank: Heartland Bank is the proposed merger partner and NZ's most direct comparable challenger bank, offering reverse mortgages, livestock finance, asset finance, and small business banking. Highly comparable to TSB in scale (~$5.6B NZ assets pre-merger), target segments (SME, rural, retirees), and strategic positioning as a Big 4 alternative in New Zealand.

Broad incumbents

• ASB Bank: ASB is one of New Zealand's Big 4 banks, owned by CBA, providing retail, business, and rural banking. Direct competitor across home loans, credit cards, and everyday banking — and notably a co-respondent with TSB in the responsible lending breach admitted to the Commerce Commission.
• Westpac New Zealand: Westpac NZ is the local subsidiary of Westpac Banking Corporation and one of the Big 4 Australian-owned NZ banks. Competes head-on with TSB across retail deposits, mortgages, business banking, and KiwiSaver — also benefits from parent-group funding cost advantages TSB cannot match alone.
• ANZ Bank New Zealand: ANZ is the largest bank in New Zealand and one of the four Australian-owned Big 4 that dominate the NZ market. Offers a complete retail, business, and institutional banking suite across the country — the primary competitive incumbent TSB positions itself against as the local alternative.
• Bank of New Zealand (BNZ): BNZ is a Big 4 Australian-owned (NAB) commercial and retail bank with full nationwide coverage. Overlaps with TSB in personal banking, mortgages, business banking, and rural/agribusiness lending — a direct incumbent competitor across virtually every product line.

Regional players

• Rabobank New Zealand: Rabobank New Zealand is the local subsidiary of the Dutch global agribusiness banking specialist, focused almost exclusively on farming and food & agri clients. Comparable to TSB's AgriBusiness franchise and rural lending capability, though not a direct competitor in retail or SME banking.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/TSBNewZealand
• Facebookfacebook.com/TSBNewZealand
• LinkedInnz.linkedin.com/company/tsb_nz
• Instagraminstagram.com/tsb_nz
• Xx.com/TSB_NZ

Compliance7 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about TSB Bank