Kiwibank reports decline
(18 August 2010 – New Zealand) State-owned lender Kiwibank has revealed a 13 percent decline in full year-profit, as heavy competition for retail deposits weighs margins down.
The New Zealand post subsidiary reported a net income of NZ$45.8 million (A$36 million) for the year ended June 30, a decline from NZ$63.6 million a year earlier.
Income from interest dropped 13 percent to NZ$563.9 million, outpacing an 11 percent decline in interest expense to NZ$430.5 million.
The bank’s chief executive, Sam Knowles, said in a statement that the earnings were a little ‘disappointing’.
Kiwibank’s performance was affected by the very strong competition in the retail deposit market, Mr Knowles added.
Despite the bank’s margins coming under intense pressure the group grew its loan book by 23 percent to NZ$10.4 billion, while retail deposits increased by 3 percent to NZ$6.9 billion.
The bank also more than doubled its wholesale deposits to NZ$3.4 billion.
Income from interest dropped 13 percent to NZ$563.9 million, outpacing an 11 percent decline in interest expense to NZ$430.5 million.
The bank’s chief executive, Sam Knowles, said in a statement that the earnings were a little ‘disappointing’.
Kiwibank’s performance was affected by the very strong competition in the retail deposit market, Mr Knowles added.
Despite the bank’s margins coming under intense pressure the group grew its loan book by 23 percent to NZ$10.4 billion, while retail deposits increased by 3 percent to NZ$6.9 billion.
The bank also more than doubled its wholesale deposits to NZ$3.4 billion.
Subscribe