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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news