(23 August 2012 – New Zealand) Kiwibank announced a record after-tax profit of NZ$79.1 million (A$61.2 million) for the financial year ended 30 June, a huge increase from the previous year’s profit of NZ$21.2 million.Kiwibank chief executive Paul Brock said the result represented “a significant bounce back from the financial stresses of the last few years”.
In the past year, Kiwibank has increased loans and advances by 8 percent from NZ$11.5 billion to NZ$12.4 billion; increased customer deposits by 9 percent from NZ$10.6 billion to NZ$11.6 billion and customer numbers now exceed 800,000 (nearly 10 percent of main bank market share).
Total provisions for impairment losses stood at NZ$91 million as at 30 June 2012, slightly higher than 30 June 2011 at NZ$87 million.
Brock said the positive financial result was largely attributable to Net Interest Income (NII) that has increased during the year as customers switched from fixed to floating mortgages.
This margin compared to average assets has increased from 1.47 percent to 1.79 percent year on year. Brock said customer deposits accounted for 83 percent of all bank funding.