Kiwibank Increases Profit by 61 Per Cent

5 September 2007

MEDIA RELEASE

Kiwibank Increases Profit by 61 Per Cent

Kiwibank has announced an after-tax profit of $25.5 million for the 12 months ended 30 June 2007. This is an increase of $9.7 million (61 per cent) over the corresponding period in 2006.

Chief Executive Sam Knowles described the result as “very satisfactory in an increasingly competitive market“.

He said that in the 12 months to 30 June 2007:

- Loans and advances increased 39 per cent from $2.61 billion to $3.63 billion

- Deposits increased 64 per cent from $2.38 billion to $3.90 billion

- The number of customers who have joined the bank increased by another 100,000 to more than 550,000

Mr Knowles said it was very challenging to maintain momentum in the present housing market, but adding a billion dollars of loans was a good performance. In addition, the figures for the new financial year will be significantly boosted by the purchase of the AMP branded mortgages from HSBC. The portfolio transferred amounts to $669m. Kiwibank is now providing financing directly to AMP for home loans.

The bank also completed the purchase of a 51 per cent share holding in New Zealand Home Loans, which increases its penetration into the home loan market.

On the deposit front, the bank had been particularly successful with its Online call account, attracting nearly a billion dollars during the financial year. This was boosted by funds being switched from Superbank which withdrew from the New Zealand market.

Mr Knowles said the bank successfully completed a $75 million bond issue during the year which had been very well supported “which shows the confidence the financial market has in the bank”.

He said he expected the numbers joining the bank could be expected to slow over the next year, but noted an average of 2000 people a week had opened accounts during the financial year.

ENDS

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