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Kiwibank Reports $7 Million Profit

20 September 2005

Kiwibank Reports $7 Million Profit

Kiwibank has announced an after-tax profit of $7.2 million for the 12 months ended 30 June 2005. This compares with a loss of $0.5 million for the corresponding period in 2004.

Chief Executive Sam Knowles said the bank continues to prosper and grow in the three key areas of loans, deposits and customer numbers.

He said that in the 12 months to 30 June 2005:

* Home loans increased 50 per cent from $1 billion to $1.5 billion
* Retail deposits increased 48 per cent from $960 million to $1.42 billion
* Customer numbers increased 40 per cent to 355,000
Mr Knowles said the bank had performed well in a very competitive environment.

"The home loan market was extremely challenging with significant rate cutting and price wars between the major banks. Kiwibank chose to not only compete in the rates battle, but to beat the unbeatable and to offer longer term loan deals that quite simply no other bank would match."

He said Kiwibank had successfully launched small business banking services and was progressively opening offices in the main centres to meet the large demand for services from a New Zealand-owned bank.

Kiwibank also opened a nationwide network of Automated Teller Machines (ATMs).

During the financial year, income increased 37 per cent, but expenses rose only 25 per cent.

Mr Knowles said perhaps the most important aspect of the result was the delivering on promises. "We said when Kiwibank opened for business in early 2002 that we would make a profit after three years operation. We have met the challenge and produced a profit before tax of nearly 11 million dollars. We have met our financial objectives without compromising our foundations of lower fees and better service."

ENDS

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