Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kiwibank 1H profit falls 10% on tight margins, capital spend

Kiwibank 1H profit falls 10% on tight margins, capital spend

Feb 24 (BusinessDesk) – Kiwibank, the biggest profit generator for state-owned parent New Zealand Post, said first-half profit fell 10 percent because of a squeeze on lending margins and infrastructure spending.

Profit fell to $52 million in the six months ended Dec. 31, from a record $58 million in the same period a year earlier, the Wellington based lender said in a statement.

Total lending rose 5.7 percent to $14 billion while customer deposits increased 2.4 percent to $12.4 billion. Deposits account for 81.7 percent of the bank’s funding, it said.

Kiwibank said it plans to spend more than $100 million over the next four years to upgrade is core banking systems. The project will involve a number of IT providers and a banking system built by Germany’s SAP, it said.

“The result was satisfactory, but fell short of the excellent result from last year as a result of tighter lending margins and investment in the bank’s infrastructure,” said chief executive Paul Brock.

Kiwibank accounted for about 73 percent of parent NZ Post’s interim profit of $71 million, announced separately today. Kiwibank opened eight branches on the North Shore as part of its “retail transformation programme” while NZ Post is reducing its footprint.

The lender is New Zealand’s fifth largest and said today it has total customers of 840,000, or 23 percent of the total market, although the number who used Kiwibank for most or all of their banking services was 385,000, or 10.7 percent market share.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news