Kiwibank half year profit soars from previous year
(24 February 2012 – New Zealand) Kiwibank reported a tax-paid profit of NZ$37.9 million (A$29.5 million) for the half year to December.
The result was up from NZ$13.9 million the year before.
The improvement in the state-owned bank's result was largely due to a 38 percent increase in net interest income to NZ$123 million and a substantial fall in bad and doubtful debt provisioning to NZ$18 million.
Total lending in the second half increased 5 percent to NZ$12.1 billion and retail deposits grew 8.6 percent to NZ$8.6 billion.
Chief executive Paul Brock said most new lending was due to customers switching to Kiwibank from other banks, rather than growth in new lending.
The majority of mortgage lending was on floating rates, which had helped to improve net interest margins by 27 basis points to 1.69 percent.
Retail deposits now accounted for 86 percent of all bank funding.
Parent New Zealand Post also injected another NZ$50 million into the bank in December to further strengthen its capital.
''We have largely worked through the set-backs associated with the global economy and with the events in Christchurch,'' Brock said.
Kiwibank had grown customer numbers to more than 800,000.
The improvement in the state-owned bank's result was largely due to a 38 percent increase in net interest income to NZ$123 million and a substantial fall in bad and doubtful debt provisioning to NZ$18 million.
Total lending in the second half increased 5 percent to NZ$12.1 billion and retail deposits grew 8.6 percent to NZ$8.6 billion.
Chief executive Paul Brock said most new lending was due to customers switching to Kiwibank from other banks, rather than growth in new lending.
The majority of mortgage lending was on floating rates, which had helped to improve net interest margins by 27 basis points to 1.69 percent.
Retail deposits now accounted for 86 percent of all bank funding.
Parent New Zealand Post also injected another NZ$50 million into the bank in December to further strengthen its capital.
''We have largely worked through the set-backs associated with the global economy and with the events in Christchurch,'' Brock said.
Kiwibank had grown customer numbers to more than 800,000.
Subscribe