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

 


Kiwibank profit hits $100 million

29 August 2014

MEDIA RELEASE


Kiwibank profit hits $100 million
Kiwi Group Holdings Limited (“KGH”), which includes Kiwibank Limited and associated companies involved in Wealth Management, Insurance and New Zealand Home Loans, has achieved an after tax profit of $107 million for the year ended 30 June 2014.
The bulk of the profit was made up by the Kiwibank Banking Group (“Kiwibank”) which achieved an after-tax profit of $100 million, an increase of three per cent over the previous year’s profit of $97 million.
Kiwibank Chief Executive Paul Brock said the underlying performance was very encouraging and emphasised the increasing contribution of the financial services group to the overall performance of the New Zealand Post Group.

Focusing on the bank’s performance, Mr Brock said loans and deposits showed healthy growth with the bank increasing market share in its key markets. There has been solid revenue growth and margin improvement along with investments into a new core banking system, the retail network and digital initiatives which have increased costs. This issue is being addressed with an internal restructure designed to improve both customer service and productivity and reduce costs.

In the last year, Kiwibank:
• Increased loans and advances by 10.6% from $13.2 billion to $14.6 billion
• Increased customer deposits by 5.8% from $12.1 billion to $12.8 billion
Mr Brock said the bank was now at an important stage of its growth. “After only 12 years of trading we have about 860,000 customers in what is a very competitive market.

This brings with it special challenges to ensure we maintain profitable growth as well as continuing to provide excellent customer service and that we operate where our customers are – both face to face and in an increasingly digital world.

This means we must continually look at how we do business including how we manage our costs. We are meeting this challenge head-on and I look forward to steadily improving results in the coming years.”

Mr Brock said there will be significant new investment in the bank’s infrastructure with approximately $100 million being spent over the next four years upgrading the core banking system.

Significant events during the financial year included the announcement of a new regional office in Hastings creating employment opportunities in that region.

“This project is a key part of our business continuity programme to ensure that there would be no disruption to banking services should there be a sustained service outage in Auckland or Wellington. Refurbishment is well underway and the site is expected to be operational by late November.”

Mr Brock said investor confidence in the bank was reinforced with a successful capital note offer in May. The issue raised $100m and contributed to a total capital ratio of 12.9% at the end of June.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news