Kiwibank profit small-fry compared to what it owes

Monday 21 Feb 2005

Rodney Hide - Press Releases - Other

Kiwibank's first profit in three years deserved little celebration, said ACT Leader Rodney Hide today.

"Let's not forget that while the People's Bank has announced a six-month profit of $2.5 million, it owes the New Zealand people $120 million.

"Kiwibank remains a speck in the banking world and has had no influence on other banks to lower their fees, as Mr Anderton once promised."

Mr Hide said the bank's growth would always be stifled given it runs on the basis of large numbers of low-value deposits.

"Kiwibank's survival is dependent on a cross-subsidy from New Zealand Post whose more profitable revenue streams feed into the bank. What we really need to see is how Kiwibank would perform on its own," said Mr Hide.

ENDS

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