KEY POINTS:
Kiwibank has increased annual after-tax profit by 61 per cent to $25.5 million as it increased its loans by a billion dollars.
In the year to June last year after tax net profit was $15.8 million.
Sam Knowles, chief executive of the state-owned bank, today said the result was satisfactory in an increasingly competitive market.
It was very challenging to maintain momentum in the present housing market, he said.
In the year to the end of June, Kiwibank increased loans and advances 39 per cent from $2.61 billion to $3.63 billion.
Deposits increased 64 per cent from $2.38 billion to $3.9 billion, while customer numbers increased by 100,000 to more than 550,000.
Total assets grew 54.8 per cent to $4.76 billion.
Mr Knowles said that on the deposit front, the bank had been particularly successful with its Online call account, attracting nearly a billion dollars during the financial year.
That was boosted by funds being switched from Superbank which withdrew from the New Zealand market.
Figures for the new financial year would be significantly boosted by the purchase of the AMP branded mortgages from HSBC, Mr Knowles said.
The portfolio transferred amounted to $669 million, and Kiwibank was now providing financing directly to AMP for home loans.
Kiwibank had also completed the purchase of a 51 per cent share holding in New Zealand Home Loans, which increases its penetration into the home loan market.
Mr Knowles said he expected the numbers joining the bank to slow in the next year.
- NZPA
