“We’re running an organisation that prides itself on being a credible alternative to the big Australian banks”
Kiwibank has released its full year financial results for the year ended 30 June 2019, and has recorded $2.1 billion in consumer lending growth along with a $2.1 billion rise in consumer deposits.
Its net profit after tax (NPAT) was $108 million – down by $7 million on the year prior, which CEO Steve Jurkovich says was down to several one-off developments which occurred in 2018.
Kiwibank noted its increasing focus on small and medium business lending, which it says will likely grow further over the next few years, and the success of its first home buyer package which has helped almost 2000 first-time buyers into new homes.
Jurkovich also highlighted the bank’s involvement with the mental health-focused I Am Hope initiative, its receipt of the Gender Tick and its financial education programme.
“Our net profit after tax was down, and the story behind the story is that we received a $12 million insurance payment for the Kaikoura earthquake last year, and we also dropped around $12 million in fees across our products and services,” Jurkovich told NZ Adviser. “Those were one-offs that didn’t reoccur.”
“At the end of the day, we’re running an organisation that prides itself on being a credible alternative to the big Australian banks,” he continued. “Growing at 12% in lending in deposits is a growth rate twice as fast as the market – so I hope that we’re really making a difference.”
Kiwibank also did more business through mortgage advisers, and Jurkovich says that if a different bank can provide a better option, then that still counts as a win.
“Mortgage lending is a very big part of our business, and we did more business with third-party advisers this year than we’ve ever done before,” he said. “This recognises that people want choice, and that they want to pursue the best option for them.
“We’ve also invested more in technology, processes and simplifying our businesses, and I think we’re making good progress. Over the coming year our priority is continued investment to ensure Kiwibank is fit to deliver on its purpose and meet its potential.”
