Kiwibank comes of age, set to pay first annual dividend

Kiwibank comes of age, set to pay first annual dividend in 2015

By Tina Morrison

Aug. 28 (BusinessDesk) - Kiwibank, the banking unit of state-owned New Zealand Post, will pay its first annual dividend after 13 years of operation, reflecting its increased size, record profits and its ability to fund its own activities.

Wellington-based Kiwibank increased profit 27 percent to $127 million in the year ended June 30, as revenue gained 17 percent to $560 million, according to a statement from NZ Post. Net banking interest revenue rose 24 percent to $359 million.

Launched in 2002, Kiwibank will pay its first annual dividend to its parent this year, following on from the payment of a $22 million dividend in March from its first-half earnings. The board is likely to make a decision on the final dividend next month.

Kiwibank contributed the bulk of NZ Post's $143 million profit in the past year, as it benefited from net interest margin growth, said group chief executive Brian Roche.

(BusinessDesk)

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