Kiwi Group Holdings, which includes Kiwibank, Kiwi Insurance and Kiwi Wealth, has declared a profit of $73 million after tax for the six months ended December 31, 2015. This compares with a profit after tax of $72 million for the same period in 2014. Kiwi Group Holdings is owned by New Zealand Post Group.

Kiwi Group Holdings and Kiwibank Chief Executive Paul Brock described the results as "a healthy consolidation after spectacular growth for the same period reported last year of more than 35%".

The Kiwibank contribution to the result was $71 million, matching the $71 million for the same period last year.

Focusing on the bank result, Mr Brock said that in the six months from July 1, 2015 to December 31, 2015:

  • Total lending (home loans, business banking and credit cards) increased 4.8% from $15.60 billion to $16.35 billion
  • Customer deposits increased 5.0% from $13.74 billion to $14.43 billion

Mr Brock said the Group was on track to match and possibly exceed last year’s full year result of $127 million after tax which was a pleasing result in a period of significant spend on strategic initiatives.

Mr Brock described the trading period of the last six months of last year as "volatile" with the Official Cash Rate continuing to fall, interest rate margins tightening and vigorous competition for loans and deposits.

"Customer support has enabled Kiwibank to continue to fund lending for home loans from deposits by more than 80%.

"We have also maintained customer growth with our total customer base at the end of the year at 920,000 (880,000 at the same time in 2014). The critical measure of Main Bank Customers increased from 418,000 in December 2014 to 435,000 at the end of 2015.

"This is very encouraging support of a New Zealand-owned bank in an internationally competitive banking environment."

"This is very encouraging support of a New Zealand-owned bank in an internationally competitive banking environment."

  • Continued investment and progress in upgrading the bank’s core technology systems
  • On-going investment in digital business strategies including digital on-boarding
  • Increasing growth and revenue diversification from Kiwi Wealth and Kiwi Insurance businesses with funds under management up 6.7% to $3.8bn
  • Reaching agreement on two stand-alone Kiwibank branches in central Christchurch and Hamilton (all branches previously operated through Post Corporate or franchise shops)
  • Standard and Poor’s Rating Services affirming Kiwibank’s credit rating as A+ stable (previously negative)
  • Dividend paid to NZ Post of $24m, bringing total dividends paid in 2015 to $46m.
Profit and Loss chart
Balance fund chart

For further information: Bruce Thompson, Communications Manager (04) 460 6831