Kiwibank chief executive Steve Jurkovich Photo: Kiwibank
Kiwibank has posted a lower full-year profit on the back of increased costs and a fall in margins.
Key numbers for the year ended June compared with a year ago:
- Net profit $191m vs $202m
- Net interest income $858m vs $824m
- Lending $35.8b vs $32.4b
- Deposit $30.3b vs $ 28.2b
- Net interest margin 2.25 pct vs 2.38 pct
- Bad debt provisions $29m vs $24m
Chief executive Steve Jurkovich said home and business lending as well as deposits grew, and continued to outpace the broader banking market.
He said trading conditions had been challenging, but the bank had been "optimistic" in supporting customers and looking for growth.
"We delivered strong underlying growth in the highly competitive home lending and deposit markets. Business banking was a standout in a subdued market and a clear signal of our commitment to backing Kiwi businesses through uncertain times."
Jurkovich said the bank had also spent on systems and technology to improve fraud protection, quicker lending decisions, and expanding products on its new platform.
He expected a general improvement in business and increased borrowing demand as interest rates fall and the economy recovers.
"While global and domestic challenges remain, this sets the stage for a more resilient and confident recovery."
Capital boost
Jurkovich said Kiwibank was preparing for the government approved capital raising.
Last month Cabinet approved the raising of up to $500 million to lift Kiwibank's financial capability to better compete with big four Australian banks.
"Cabinet's approval for our parent company Kiwi Group Capital (KGC) to explore a capital raise of up to $500m is designed to accelerate our growth and strengthen our competitive edge."
"But this is about more than scale, it's about delivering better outcomes for all New Zealanders, whether they bank with us or not."
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