"Being the Kiwi-owned alternative in a market dominated by Australian-owned banks has never been more relevant," says CEO
Kiwibank has released its half-year financial results, and has recorded a $1.1 billion increase in customer lending and a $1 billion growth in customer deposits for the six months to 31 December 2019.
Net profit after tax (NPAT) was $51 million, down by 18% on December 2018 but up by 10.9% on the six months to June 2019. Operating income increased by 1% to $277 million, and business lending rose by 17%.
Kiwibank CEO Steve Jurkovich said the bank had ‘once again outperformed the market’ in terms of lending and deposits, and that profit was in line with expectations.
“Our purpose is to be the New Zealand-owned bank that makes Kiwis better off,” Jurkovich said. “We deliver on this purpose when we support more Kiwis with their home ownership goals, business growth, and savings ambitions. As we position ourselves for the future our focus is providing simple, relevant and competitive offerings.”
“Business lending was up 17% and home loans were up by 4% in the six months to 31 December 2019 showing more than ever Kiwis are choosing to support a New Zealand-owned bank, and in turn Kiwibank is there backing Kiwi dreams,” he added.
Jurkovich noted that Kiwibank had faced rising operating costs due to a rise in customers, increased investment into its transformation programme and increased risk and compliance costs. Operating income growth was increased ‘moderately’ through an uptick in lending, deposits and the one-off sale of its Prezzy card business.
Looking ahead, Jurkovich said further investment into Kiwibank’s sustainability will be required, and welcomed the changes announced by the Reserve Bank following its Capital Review. He says Kiwibank is working with the Reserve Bank ahead of the capital framework coming into effect in July.
“Our founding purpose, of being the bank that is the Kiwi-owned alternative in a market dominated by Australian-owned banks, has never been more relevant,” Jurkovich said.
“To deliver on our potential, New Zealanders need us to adjust and adapt to meet the needs of our customers in an ever-changing world.”
