The group, which includes Kiwibank, has reported a fall in net profit of $58m from $131m
Kiwibank’s parent company, Kiwi Group Holdings, has reported a net profit after tax of $58 million, a big drop from $131 million last year.
The group’s unaudited underlying profit was at $129 million, down 1.5% from the $131 million in the prior comparative period.
Kiwibank, which provides the bulk of the group’s earnings, registered an unaudited net profit after of $53 million and an unaudited underlying profit of $122 million.
Group chief executive Paul Brock said maintaining similar levels of underlying profitability to last year’s performance, is very pleasing – despite a number of external disruptions including November’s earthquake as well as regulatory challenges.
According to the group, the results for the year ended in June have been significantly impacted by an impairment of $90 million relating to the work in progress on the IT project, CoreMod.
The group’s customer deposits were up 8.1% to $16.0 billion, from $14.8 billion. It also has continued to build presence in the SME sector, with 8.0% market share at the end of June.
Its lending and advances to customers were up by 6.8% from $16.7 billion to $17.8 billion, while KiwiSaver membership increased by 13%.
Overall, Brock said profitability across the group was commensurate with the operating environment, levels of investment and work underway to deliver on their ambitions.
“We’re positioning ourselves to take full advantage of the opportunities in front of us, predominantly with a digital focus – we’re committed to our customers and long term value creation for our shareholders,” said Brock.
Its businesses including Kiwi Insure, Kiwi Wealth, and New Zealand Home Loans have also experienced growth, particularly the Wealth division with nearly $4 billion of invested funds and serves over 158,000 KiwiSaver customers.
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The group’s unaudited underlying profit was at $129 million, down 1.5% from the $131 million in the prior comparative period.
Kiwibank, which provides the bulk of the group’s earnings, registered an unaudited net profit after of $53 million and an unaudited underlying profit of $122 million.
Group chief executive Paul Brock said maintaining similar levels of underlying profitability to last year’s performance, is very pleasing – despite a number of external disruptions including November’s earthquake as well as regulatory challenges.
According to the group, the results for the year ended in June have been significantly impacted by an impairment of $90 million relating to the work in progress on the IT project, CoreMod.
The group’s customer deposits were up 8.1% to $16.0 billion, from $14.8 billion. It also has continued to build presence in the SME sector, with 8.0% market share at the end of June.
Its lending and advances to customers were up by 6.8% from $16.7 billion to $17.8 billion, while KiwiSaver membership increased by 13%.
Overall, Brock said profitability across the group was commensurate with the operating environment, levels of investment and work underway to deliver on their ambitions.
“We’re positioning ourselves to take full advantage of the opportunities in front of us, predominantly with a digital focus – we’re committed to our customers and long term value creation for our shareholders,” said Brock.
Its businesses including Kiwi Insure, Kiwi Wealth, and New Zealand Home Loans have also experienced growth, particularly the Wealth division with nearly $4 billion of invested funds and serves over 158,000 KiwiSaver customers.
Related stories:
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Major bank to close its internet, phone banking sub-brand
