Kiwibank six-month financial announcement (July 2014 - December 2014)

23/02/2015

Kiwibank Banking Group has declared a profit after tax of $71 million for the six months ended 31 December 2014, a 36% increase on the $52 million profit for the same period in 2013.

Kiwibank Chief Executive Paul Brock said the Banking Group result was very encouraging and pointed to a record full year performance. The key financial results are:

  • Total lending (home loans, business banking and credit cards) increased 2.9% from $14.63 billion to $15.05 billion
  • Customer deposits increased 4.2% from $12.75 billion to $13.28 billion
  • Operating revenue increased by 14.1% whilst operating expenses decreased by 4.3%

Mr Brock said the result continued the strong recovery after the financial constraints resulting from the Christchurch earthquakes and the global financial crisis. The underlying strength of the performance was improved net interest margin and containment of costs. Margin improvement was driven by favourable funding conditions as lower funding costs provided an offset to lower lending margins resulting from strong competition and customer preference for fixed term loans.

Mr Brock said deposits continued to account for more than 80% of all bank funding.

Mr Brock said that at the end of December, Kiwibank had 880,000 customers - basically one in four of all bank account holders in New Zealand. Of this number 418,000 were considered main bank customers (having most or all of their banking with Kiwibank). This represents an 11.6% market share.

Mr Brock said that now the bank has been operating for 13 years, its customer base has not only kept growing but has diversified to be a stable and growing base of mortgage holders, depositors and small to medium businesses. There continued to be strong performances by associated companies involved in KiwiSaver, wealth management and insurance.


Profit and loss

Dollars in millions

6 months ended 31 Dec 2014

6 months ended 30 Jun 2014

% Growth

6 months ended 31 Dec 2013

Net interest income

179

153

17.0%

140

Other income

104

95

9.5%

91

Total operating revenue

283

248

14.1%

231

Operating expenses

(176)

(184)

(4.3%)

(160)

Impairment allowance

(9)

3

Large

1

Net profit before tax

98

67

46.3%

72

Income tax expense

(27)

(19)

42.1%

(20)

Net profit after tax

71

48

47.9%

52

Dollars in millions

6 months ended 31 Dec 2014

6 months ended 30 Jun 2014

% Growth

6 months ended 31 Dec 2013

Net interest income

179

153

17.0%

140

Other income

104

95

9.5%

91

Total operating revenue

283

248

14.1%

231

Operating expenses

(176)

(184)

(4.3%)

(160)

Impairment allowance

(9)

3

Large

1

Net profit before tax

98

67

46.3%

72

Income tax expense

(27)

(19)

42.1%

(20)

Net profit after tax

71

48

47.9%

52

Balance Sheet

Dollars in millions

31 Dec 2014

30 Jun 2014

30 Dec 2013

Growth YTD

Grow 12 months

Assets

Loans and advances

15,054

14,630

13,952

2.9%

7.9%

Wholesale & other assets

2,107

2,046

2,160

3.0%

(2.5%)

Total assets

17,161

16,676

16,112

2.9%

6.5%

 

Financed by:

Liabilities

Customer deposits

13,283

12,751

12,412

4.2%

7.0%

Securities issued & other liabilities

2,840

2,922

2,7779

(2.8)

2.2%

Total assets

16,123

15,673

15,191

2.9%

6.1%

 

Shareholder's equity

1,308

1,003

921

3.5%

12.7%

Total liabilities & shareholder's equity

17,161

16,676

16,112

2.9%

6.5%

Dollars in millions

31 Dec 2014

30 Jun 2014

30 Dec 2013

Growth YTD

Grow 12 months

Assets

Loans and advances

15,054

14,630

13,952

2.9%

7.9%

Wholesale & other assets

2,107

2,046

2,160

3.0%

(2.5%)

Total assets

17,161

16,676

16,112

2.9%

6.5%

 

Financed by:

Liabilities

Customer deposits

13,283

12,751

12,412

4.2%

7.0%

Securities issued & other liabilities

2,840

2,922

2,7779

(2.8)

2.2%

Total assets

16,123

15,673

15,191

2.9%

6.1%

 

Shareholder's equity

1,308

1,003

921

3.5%

12.7%

Total liabilities & shareholder's equity

17,161

16,676

16,112

2.9%

6.5%

For further information: Bruce Thompson, Communications Manager (040 460 6831)