Sharechat Logo

Kiwibank half-year net profit down 41%

Thursday 24th February 2011

Text too small?

State-owned Kiwibank reported a 41% fall in half year net profit to $13.9 million, as provisions for bad debts were increased to $45.5 million from $19.5 million.

In the six months to the end of December, total lending - home loans, business banking and credit cards - rose 5% from a year earlier to $10.9 billion, while retail deposits were up 10% to $7.6 billion.

Kiwibank chief executive Paul Brock, who replaced Sam Knowles in the top job during the half year, said the bank's strong underlying performance was affected by the inevitable effects of the global financial crisis that had resulted in increased provision for bad debts.

The bad debts were largely unsuccessful business investments and few involved domestic home owners, Brock said.

The level of at-risk loans remained small compared with the total lending portfolio and reflected the falling value of certain classes of property collateral and remained modest when compared with other banks.

Total income for the period was up 9.9% to $169 million and operating expenses were up 6.6% to $118 million. Net-interest-income had risen from $66.3 million to $89.3 million, driven primarily by higher margin variable loans compared to fixed loans.

 

NZPA



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AIA - June 2025 Monthly traffic update
CHI - Q2 2025 Operational Update
July 15th Morning Report
BPG - Blackpearl Acquires US AI Platform to Accelerate Growth
TGG - Response to media speculation
ARB - Annual Meeting Date and Director Nominations
CNU - Q4 FY25 Connections Update
MOVE FY25 Results and Investor Briefing 29 August 2025
RYM - First quarter trading update
July 11th Morning Report