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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news