Kiwibank posts improved year loss of $490,000

1.00pm

State-owned Kiwibank today turned in a much reduced June year net loss of $490,000, from last year's loss of $8.03 million, and forecast a positive first half for 2004/05.

Chief executive Sam Knowles said the bank was now operating profitably and would see a positive result in the first half of 2004/05.

Kiwibank had made a profit in the last three quarters of 2003/04, Mr Knowles said in a statement.

The June year result showed Kiwibank's home loans book had increased by $500m, to $1.03 billion.

Its total assets were valued at $1.3b.

Deposits for the 12 months to June 30 grew by $495m, to $960m.

Kiwibank had some 250,000 customers and more than 300 branches at balance day.

Meanwhile, Mr Knowles said Kiwibank was to launch a business banking pilot scheme in Wellington later this year.

"This will involve providing banking services for a selected number of businesses before expanding the programme in the new year," Mr Knowles said.

New Zealand Post - the bank's owner - had received approval from the Government for the expansion of banking services into business banking.

"This is a logical development for the bank after its strong entry into personal banking two and a half years ago," Mr Knowles said.

Summing up the 2003/04 year, Mr Knowles said Kiwibank's progress had been "far stronger" than expected.

He said the success could be pinned to the bank's New Zealand ownership, branch network, and competitive services.

- NZPA