20 Sept 2005

Hon Jim Anderton MP, Progressive Leader

Kiwibank proves it worth again with $7m after tax profit

Kiwibank's profit announcement today shows just how valuable it is to have a New Zealand owned bank, Progressive Leader and instigator of the bank, Jim Anderton said.

Today Kiwibank announced a $7 million after tax profit (paying $4 million tax from $11 million gross profit). Their lending portfolio has grown to $1.5 billion and deposits are now up to $1.4 billion.

"Kiwibank is a shining example of a well run, nation wide bank. Customer satisfaction is high at 92 per cent, beating the national industry average by 10 per cent. New customers continue to sign up at a rate of 400 per day and they continue to increase branch numbers (now 306) even though they already have the largest branch network of any bank in New Zealand. They have also taken on 54 new staff in the past year and now employ a total of 440 New Zealanders.

"All over the country new customers continue to join up to use Kiwibank's competitively priced services. Families are benefiting from low interest mortgages, businesses from new low cost business services, and everyone can now use Kiwibank's own ATM network.

"Clearly Kiwibank is an asset to the country and must be preserved for the future. The fact that any profit they make goes straight back to New Zealanders, unlike the big overseas owned banks, should be enough to secure their future no matter what government is in power.

"Any government would be mad to put Kiwibank at risk of sell-off or even partial sell off. While the foreign owned banks take profits offshore, Kiwibank is providing a strongly competitive, innovative, customer focussed New Zealand owned banking service and must continue to do so for the future," Jim Anderton said.

ENDS

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