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 21 August 2025:

FY25 financial highlights:

▪ Net profit after tax of $191 million for the 12 months to 30 June 2025, down 5% on the prior financial year.

▪ Strong balance sheet growth was offset by a lower Net Interest Margin in a challenging economic environment.

▪ Above market lending and deposit growth as more Kiwi choose Kiwibank:

o Lending growth of $3.3 billion, growing total lending by 10% to $35.8 billion.

▪ Home lending grew $2.3 billion. This included helping 9,018 Kiwi get on the ladder and 5,752 Kiwi into homes with a better deal through refinancing.

▪ Business lending grew by $1 billion.

o Kiwibank’s deposit book grew 8% to $30.3 billion.

Chief Executive commentary:

Kiwibank Chief Executive Steve Jurkovich said:

“While conditions remained challenging across sectors, our strategy is about staying optimistic, consistently being open for business and supporting customers – not just in the good times, but especially in the tougher times. That’s exactly what we’ve done.

“In FY25, we delivered strong underlying growth in the highly competitive home lending and deposit markets. Business banking was a standout in a subdued market and a clear signal of our commitment to backing Kiwi businesses through uncertain times.

“At the same time, we continued building the Kiwibank of the future by investing to be more adaptable and customer focused. Over the past 12 months, we delivered key advancements including enhanced fraud protection, faster lending decisions for small businesses, and piloted our first product on a new core banking platform.

“We believe strongly in technology to deliver convenience for customers, but recognise that being face to face with your banker in moments that matter is still highly valued by customers. That is why we continue to have the largest physical banking network in the country with ongoing investment in our branch network, including moving into New Zealand’s busiest mall in Newmarket (Auckland) and committing to Northland with plans for a new Kerikeri branch and a refurbishment of Whangārei Central to deliver faster, more convenient service.”