Kiwibank Continues Strong Growth

Media Release
26 February 2009

Kiwibank Continues Strong Growth

Kiwibank has declared a profit of $25.8 million after tax for the six months ended December 31, 2008. This compares with a profit after tax of $22.7 million for the same period in 2007.

Kiwibank Chief Executive Sam Knowles described the result as “satisfactory in a challenging financial environment”.

In the six months from July1, 2008 to December 31, 2008:

• Total lending (home loans, business banking and credit cards) increased 25% from $5.6 billion to $7.0 billion
• Retail deposits increased 31% from $4.8 billion to $6.3 billion

Mr Knowles said Kiwibank had taken a very aggressive position in the home loan market holding rates below major competitors and front-footing decreases late last year. “We stuck to our plan of being slow to rise and fast to fall with home loans rates and it produced excellent results.”

Mr Knowles said there was a significant increase in property owners switching their loans from existing banks to Kiwibank’s floating rates. “As rates started to fall we attracted new business from people who wanted the flexibility of a low floating rate while they waited to see where rates would level out.”

During the period the bank successfully attracted $60 million in term subordinated debt and joined the Government’s retail deposit guarantee scheme.

Kiwibank paid $12.1 million in tax for the period.

ENDS

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