Kiwibank profits lift with market share increase
(26 February 2013 – New Zealand) Kiwibank posted a 53 percent rise in its half-year earnings as growing interest income and market share gains become apparent in the wake of the ANZ-National merger.
The New Zealand Post-owned lender said net profit for the six months ending 31 December came in at NZ$58 million (A$47 million), up from NZ$38 million in the previous period - the highest level since the global financial crisis.
Chief Executive Paul Brock said he was pleased by the bank's performance, with the earnings now looking to have entered into an upward track after bottoming out at the end of 2010.
Income from loans rose NZ$19 million to NZ$400 million compared to the previous period, with total lending on homes, business banking and credit card up by 6 percent to NZ$12.8 billion.
Customer deposits meanwhile grew 5 percent to NZ$12.3 billion as Kiwibank picked up market share from the ANZ-National merger and natural customer attrition.
That left it with net income revenue of NZ$140 million and total operating revenues of NZ$227 million, once NZ$87 million in other earnings from subsidiary businesses are factored in.
Operating expenses rose 11 percent in the period to NZ$147 million, which Brock said was largely related to the firm's strategy to target the small business banking segment, and investing in the transactional channels needed to cater for this segment, such as online and mobile banking.
Efforts to reduce bad debts also paid off in the period, with Kiwibank's ratio of impaired assets to gross loans and advances falling to 0.43 percent from 0.67 percent. That was lower than the equivalent ratio of ANZ, ASB Bank, Bank of New Zealand and Westpac in their interim results.
Kiwibank now holds about 10 percent of the personal banking market, a gain of about 1 percentage compared to last year, a pace Brock hopes to maintain over the next few years.
Chief Executive Paul Brock said he was pleased by the bank's performance, with the earnings now looking to have entered into an upward track after bottoming out at the end of 2010.
Income from loans rose NZ$19 million to NZ$400 million compared to the previous period, with total lending on homes, business banking and credit card up by 6 percent to NZ$12.8 billion.
Customer deposits meanwhile grew 5 percent to NZ$12.3 billion as Kiwibank picked up market share from the ANZ-National merger and natural customer attrition.
That left it with net income revenue of NZ$140 million and total operating revenues of NZ$227 million, once NZ$87 million in other earnings from subsidiary businesses are factored in.
Operating expenses rose 11 percent in the period to NZ$147 million, which Brock said was largely related to the firm's strategy to target the small business banking segment, and investing in the transactional channels needed to cater for this segment, such as online and mobile banking.
Efforts to reduce bad debts also paid off in the period, with Kiwibank's ratio of impaired assets to gross loans and advances falling to 0.43 percent from 0.67 percent. That was lower than the equivalent ratio of ANZ, ASB Bank, Bank of New Zealand and Westpac in their interim results.
Kiwibank now holds about 10 percent of the personal banking market, a gain of about 1 percentage compared to last year, a pace Brock hopes to maintain over the next few years.