Kiwibank result in line with projections
Kiwibank today announced a loss of $8.03 million for the year ending June 30, 2003. The loss for the previous year was $10.2 million. Kiwibank Chief Executive Sam Knowles said the result was in line with projections and the bank remained on course to produce a profit in the financial year ending June 2005.
During the financial year the number of Kiwibank customers grew by 115,000 to 147,000. Home loans grew from $42 million to more than $500 million and deposits from $86 million to $465 million.
Mr Knowles said it had been a very satisfactory year for the bank with growth in all areas exceeding expectations. "We are not only growing our customer base, but existing customers are bringing more of their banking business across to Kiwibank."
"Highlights for the year included the very successful launch of a low-interest credit card, opening of more than 70 new branches and very pleasing public support and customer satisfaction survey results."
"The growth of the bank has been simply outstanding and has exceeded our projections. We already have 170,000 customers and confidently expect to have 200,000 by early next year."
The financial statements show that at June 30, 2003 the bank had total assets of $771.4 million and liabilities of $711.5 million. Income (after provisions) was up from $19.7 million to $48.8 million. Shareholder’s equity was $59.9 million.
Mr Knowles said the original Kiwibank business case had projected the business returning a profit after three years of operation and he is confident this target will be achieved.
Kiwibank is totally owned by New Zealand Post, a State Owned Enterprise.
For further information:
Bruce Thompson, Kiwibank Communications Manager
04) 460 6831; (027) 475 3521