Kiwibank Reports $15.8 Million Profit

5 September 2006

Kiwibank Reports $15.8 Million Profit

Kiwibank has announced an after-tax profit of $15.8 million for the 12 months ended 30 June 2006. This is more than double the profit of $7.2 million for the corresponding period in 2005.

Chief Executive Sam Knowles described the result as “better than our best expectations”.

He said that in the 12 months to 30 June 2006:

- Loans and advances increased 66 per cent from $1.57 billion to $2.61 billion
- Retail deposits increased 66 per cent from $1.43 billion to $2.38 billion
- The number of customers who had joined the bank increased to more than 450,000

Mr Knowles said the bank continued to go from strength to strength, with significant improvements in both the company’s financial performance and reputation.

“Not only have we maintained the momentum of signing up more than 2000 customers every week, but our customers are bringing to Kiwibank their investments, their loans and their support.

“Good service and customer satisfaction continue to be defining characteristics of the development of the bank.”

Mr Knowles said the banking environment in New Zealand remained keenly competitive, but Kiwibank had prospered with home loan interest rates that beat the unbeatable and sustainable high value returns on savings.

“At a time when there is some nervousness in the investment community, Kiwibank has increased its market share, particularly in the high-interest Online call account market.”

He said it was clear people were balancing the requirement for high returns with the need for financial security.

Business banking has continued to grow with high quality lending and a very competitive fee structure for small to medium sized businesses. At the end of the financial year Kiwibank had nationwide representation with 15 business banking centres in 10 cities.

During the year Kiwibank formed a partnership with Citibank to provide a full range of International accounts and services for Kiwibank customers. The accounts and services have been designed, in particular, to support small to medium businesses as they trade offshore, with cross border funds transfers, foreign exchange, foreign currency accounts, and trade services all available.

Mr Knowles said providing a range of International accounts and services consolidates Kiwibank’s position as a full service bank.

ENDS

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