Kiwibank Limited Analysis

Overview

Kiwibank offers a full range of simple, relevant personal banking products, including transactional and savings accounts, term deposits, mortgage and personal lending, along with credit cards and international services.

Kiwibank also provides business banking products to small-to-medium-sized enterprises, including transactional and savings accounts, commercial lending, credit cards, asset finance and international and trade services.

Refer to www.kiwibank.co.nz/about-us/governance/investor-centre/ for Kiwibank Limited's disclosure statement and information on Kiwibank bonds and notes.

Performance

The following information was extracted from Kiwibank Limited's full year results, released 22 August 2024:

Kiwibank today announced a net profit after tax of $202 million for the 12 months to 30 June 2024 (FY24), up 15% on the previous financial year, and the best in the bank’s history.

Chief Executive Steve Jurkovich said Kiwibank had once again outperformed the New Zealand banking market while continuing to invest more than ever in its transformation to enable future growth and deliver on its Purpose of Kiwi making Kiwi better off.

“For the fifth consecutive year, Kiwibank has improved its profitability and grown faster than our competition, as we continue to build a stronger asset for New Zealand with all our earnings staying right here.

“We know there’s plenty of choice out there, but today’s result shows once again that we are fulfilling our role as a disruptor, more Kiwi are choosing us, and momentum is on our side.”

Mr Jurkovich said Kiwibank recorded positive gains across nearly all key financial metrics in FY24, in a challenging economic environment.

The bank achieved net lending growth of $2.8 billion, growing its lending book by 9.3% to $32.4 billion. Home lending grew 2.7 times faster than the market and business lending more than 3 times faster than market. Deposits increased by $2.4 billion, growing the deposit book by 9.4% to $28.2 billion and 2.6 times faster than market growth.

“We’ve worked incredibly hard to build and maintain the trust of our customers during FY24 and to be there in those moments that matter.

“It’s great to see these efforts recognised once again by the New Zealand public, with Kiwibank named the number one bank in Kantar’s 2024 Corporate Reputation Index, and the only bank in the top 20 companies.”