20 August 2009 Media Statement

Time has come for Kiwibank critics to admit they were wrong

The time has come for Kiwibank’s critics to admit they were wrong, Progressive Wigram MP Jim Anderton says, after the people’s bank today announced an after-tax profit of $52.5 million for the past year.

Loans grew by 52 per cent. Retail deposits grew by 39 per cent.

“The decision to set up a New Zealand-owned bank was the right one.

“Kiwibank has been an overwhelming success.

“It’s great that we have our own bank performing so well at a time of international financial crisis. We don’t have to be dependent on overseas financial markets. Those markets right now look like the dog that critics claimed that Kiwibank would be.

“Kiwibank’s success results from its commitment to the New Zealand community that other banks don’t have: Its profits stay here and help New Zealand. It doesn’t get involved in large tax avoidance schemes. Kiwibank opened a larger branch network than the other banks, and as a result those banks have stopped closing their branches. And Kiwibank charges lower interest rates and fees than its overseas competitors.

“When Kiwibank was set up, National and Act – and their cheerleaders – said New Zealanders couldn’t run our own bank. They were wrong. Today would be a graceful day to admit it.”

ENDS

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