Kiwibank chief executive Steve Jurkovich said its home lending growth was 1.5 times better than the market. Photo: RNZ / Marika Khabazi
Kiwibank has posted a record full-year profit as interest income rose and lending grew across the board.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $175m vs $131m
- Net interest income $794m vs $630m
- Home lending $24.25b vs $23.15b
- Deposit growth $1.4b vs $1.8b
Home lending continued to grow, albeit at a slower pace compared to last year, as demand for mortgages cooled in the second half amid the subdued housing market.
Chief executive Steve Jurkovich said its home lending growth was 1.5 times better than the market.
He said its business banking growth of $900 million also trumped the market, but it had been affected by weaker business confidence.
Kiwibank has also set aside $101m for bad debts, compared to $67m in the prior year.
Jurkovich said impaired loans were moving back to normal levels after a period of historically low bad debts during the Covid pandemic, when interest rates were significantly lower and savings were high.
"Now, of course, at the end of those numbers is a person and so while we can talk percentages, when we talk individually with people, they are feeling the pinch," he said.
"Our teams have contacted thousands of customers to discuss the options available to them - whether that's extending loan terms, reducing payments, going interest only, or providing short-term cash injections to help get on top of their finances."
Jurkovich said feedback from those customers has been positive, with customers relieved they could access support.
He said the profit and the recent $225m capital investment put the bank in a good position to grow and compete.
