Kiwibank posts full-year profit of $174 million, down 9% on previous year

State-owned Kiwibank reported a profit of $174 million for the full year, marking a 9% decrease from the $191 million recorded the previous year. The bank attributes the decline to a 15 basis point reduction in net interest margins, which is the difference between the interest earned on loans and the interest paid for deposits. Despite this, total lending grew to $38.9 billion, driven by increased retail and business lending.

Kiwibank's CEO, Steve Jurkovich, emphasized that the bank continued to grow faster than the market, with more customers choosing the bank and significant increases in both lending and deposits. The bank remains focused on maintaining momentum through customer and market share growth, while helping more Kiwis improve their financial situation.

Meanwhile, discussions of potential mergers in the banking sector continue. Kiwibank's parent company, Kiwi Group Holdings, recently floated the idea of merging Kiwibank with TSB, another New Zealand-owned bank. TSB's owner, Toi Foundation, is also exploring a merger with Heartland Bank. Kiwibank Group Holdings Chair, David McLean, declined to comment on the merger talks, but stated that the group is interested in building a stronger New Zealand-owned banking alternative and would consider engaging with Toi Foundation if the opportunity arises.