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 half year results, released 26 February 2026:

Kiwibank delivered a positive half-year result for the six months to 31 December 2025 (1H26), with net profit after tax of $103 million, up 12% on the prior comparative period. The increase reflected strong balance sheet growth and a more favourable credit environment for customers. It's also clear some customers continued to face financial pressure.

In 1H26:

▪ Lending of $1.8b increased total lending to $37.6b:

o Retail home lending grew 1.6 times faster than the market, increasing $1.3b, reflecting strong demand for Kiwibank’s competitive rates. In the six months to December 2025, Kiwibank accounted for 13% of all net new bank mortgage lending growth, helping 6,213 Kiwi get on the ladder and more than 3,000 to refinance.

o Kiwibank backed businesses and owners with lending of $0.4b, taking total business lending to $8.7b.

▪ Deposits increased $1.4b, with total deposits rising to $31.8b.

Chief Executive Steve Jurkovich said the growth showed more customers were choosing a New Zealand-owned bank. “In a tough period for many, more Kiwi chose to bank with us. We supported businesses to expand, helped more customers get on the ladder as our lending continued to grow faster than the market, and had strong deposit activity as Kiwi backed a purpose-led, New Zealand-owned alternative,” Jurkovich said. Net interest margin decreased to 2.18 percent (from 2.29 percent) reflecting the competitive environment and increased cost of funding.