1. 1 The RaboPlus Financial Confidence IndexPublic Confidence in the Financial System September 2009

3. Investing in housing is not viewed as negatively.

4. A net 10% expect their financial circumstances to improve over the coming six month period.

5. People who have fared better financially in the past 6 months rate the various institutions included in the study more positively than others.

6. A higher percentage of men are more optimistic about their circumstances in the next 6 months.Investing in New Zealand Investment: worth more worth the same worth less Circumstances: will improve will stay the same will get worse Confidence: more about the same less

7. 3 Clearly the institutions consumers have the least confidence in are finance companies. It also seems that relative to insurance companies and banks, advisors have borne the brunt of the blame for financial crisis with share brokers relatively poorly perceived Confidence in New Zealand Financial System(1) Deposit Takers Insurers Investment Managers and Advisors Note: (1) Index score calculated as shown on p. 11

8. 4 When we compare current to non-customers of the various institutions there are significant gaps in perceptions. Without exception, non-customers have less confidence that current customers. Confidence in New Zealand Financial System: Comparing Customers to Non-Customers(1) Deposit Takers Insurers Investment Managers and Advisors BASE: Customers/Non-customers Banks: 999/1; Finance Companies 403/597; Credit Unions 205/795; Fund Managers 449/551; Share Broker 149/851; Financial Advisor 246/754; Life Insurance 607/393; General Insurance 878/122; Health Insurance 399/601 Note: (1) Index score calculated as shown on p.11

9. 5 A strong correlation is evident between perceptions people have of their various financial service providers and the likelihood of recommending their provider. Perceptions of Current Relationship and Likelihood of Recommending Deposit Takers Insurers Investment Managers and Advisors BASE: Customers: Banks: 999; Finance Companies 403; Credit Unions 205; Fund Managers 449; Share Broker 149; Financial Advisor 246; Life Insurance 607; General Insurance 878; Health Insurance 399

10. 6 People with more confidence in their own expertise appear to have done better with their investments, are more likely to use various financial advisors, and be more positive about the future. Self Rated Financial Expertise BASE: N=1,000. People were asked to rate their own expertise with respect to choosing financial products and investments into one of ‘Expert’, ‘Competent’, ‘Some Knowledge’ and ‘Novice’ categories

11. 7 And we can see most people have an opinion about what they will invest in going forward Likelihood of Investing in the Next Six Months BASE: 1,000

12. 8 Deposit-Taking Institutions

13. 9 Banks

14. 10 New Zealander on the whole feel confident in their banks and feel that they have financial strength. Banks are also well rated on providing good products and services although there are clearly feelings of negativity towards their fairness and integrity . Perceptions of Banks – Amongst all New Zealanders BASE: 1,000

15. 11 Finance Companies

16. 12 New Zealanders lack confidence in finance companies currently with over half not confident their money would be safe. There is clearly a lack of trust too, with over half disagreeing that finance companies act with integrity. Perceptions of Finance Companies – Amongst All New Zealanders BASE: 1,000

17. 13 Credit Unions and Building Societies

18. 14 Credit Unions and Building Societies are not as well known as banks or finance companies with around 20% not able to comment. However, those that can are generally more positive than negative in attitude. Perceptions of Credit Unions & Building Societies – Amongst All New Zealanders BASE: 1,000

19. 15 There is high confidence in Banks amongst New Zealanders with moderate levels for Credit Unions and Building Societies. However, confidence is generally low for Finance Companies. Perceptions Amongst All New Zealanders BASE: Includes “Don’t Know” ratings

20. 16 Investment Managers and Advisors

21. 17 Fund Managers

22. 18 Feelings are somewhat mixed towards Fund Managers although in the main more positive than negative. The worst aspect is confidence in the advice they provide. Perceptions of Fund Managers – Amongst All New Zealanders BASE: 1,000

23. 19 Share Brokers

24. 20 Many New Zealanders are not able to comment on Share Brokers, probably reflecting the relatively small proportion of New Zealanders who participate in the share market. However, amongst those who can attitudes are polarised. Perceptions of Share Brokers – Amongst All New Zealanders BASE: 1,000

25. 21 Financial Advisors

26. 22 Attitudes towards Financial Advisors are more positive than negativealthough there is a significant portion who have no opinion. Perceptions of Finance Advisors – Amongst All New Zealanders BASE: 1,000

27. 23 Amongst all New Zealanders confidence is higher for Financial Advisors and Fund Managers than for Share Brokers. Given the poor performance of Finance Companies this is an interesting finding. Perceptions Amongst All New Zealanders BASE: Includes “Don’t Know” ratings

28. 24 Insurance

29. 25 Life Insurance Providers

30. 26 New Zealanders are relatively confident that Life Insurance providers will honour valid claims and that they have the financial strength to do so Perceptions of Life Insurance Providers – Amongst All New Zealanders BASE: 1,000

31. House, Contents and Car Insurers 62

32. General insurance companies are well rated by New Zealanders with two thirds confident that valid claims will be honoured. Perceptions of House, Contents and Car Insurers – Amongst All New Zealanders BASE: 1,000 63

33. Health Insurance Providers 68

34. New Zealanders are fairly confident in their Health Insurance providers although many are unable to provide an opinion. Perceptions of Health Insurance Providers – Amongst All New Zealanders BASE: 1,000 69

35. Confidence is highest that claims will be honoured for General Insurance companies followed by Life Insurance providers. Results at a total New Zealand level for Health Insurance providers reflect that many New Zealanders are unable to rate them. Perceptions Amongst All New Zealanders BASE: Includes “Don’t Know” ratings 75

36. Appendix 1: Regional Charts 98

37. Worth the same as 6 months ago Worth more now Worth less now Compared with 6 months ago, how have your financial investments fared? BASE: xxxx 119

38. About the same More Confident Less Confident Compared to 6 months ago, how confident do you feel about investing in housing? BASE: xxxx 120

39. About the same More Confident Less Confident Compared to 6 months ago, how confident do you feel about investing in the financial sector? BASE: xxxx 121

40. Will stay about the same Will improve Will get worse Overall, how do you think your own financial circumstances will fare in the next 6 months? BASE: xxxx 122

41. Likelihood of Investing in Next 6 Months 100