"There is not a lot of excessive property development.
"Businesses are well managed - you don't get excessive leverage - people just get their business to work.
"So we are investing here because we think there is a good long-term future here."
The bank recently established a BNZ Partners facility at a cost of about $1 million, he said.
The centre has the latest technology for business communication and brought in business specialists for clients.
"It has broadened our offer and improved our client service considerably.
"As a result we have seen our market share and customer satisfaction increase."
Havelock North businessman John Newland has been appointed chairman to facilitate business mentoring and link the bank with business leaders.
"Also we are upgrading our retail stores - it's not cheap," Mr Thorburn said.
The BNZ reported a 16.8 per cent increase in its cash earnings to $612 million in the September 2010/11 year.
He said profits from trading banks were good "because they are well managed".
"If you look at New Zealand with four million people and there are five big banks trying to make a return, it breeds competition," said.
"That is why the margins in New Zealand are amongst the slimmest of the developed world."
He said it was necessary to pay a good dividend to the banks Australian shareholders "otherwise they won't give it to you when you need it".
He said in the current economic environment an Australian bank as owner was a very good thing, giving New Zealand banks a solid base and cheaper offshore borrowing costs.
"Australian banks are very strong and they give us a lot of autonomy.
"For me you wouldn't want to be owned by anything other than an Australian bank." patrick.osullivan@hbtoday.co.nz
