Photo: RNZ / Marika Khabazi
Key numbers for the six months ended December compared with a year ago:
- Net profit $92m vs $105m
- Net interest margin 2.29 pct vs 2.48 pct
- Lending $34.4bn vs $32.4bn
- Deposits $30bn vs $28.2bn
- Impairments $21m vs $15m
Kiwibank's half-year profit has fallen as the weak economy hit its margins and increased costs, but it lent more money.
Chief executive Steve Jurkovich said the state-owned bank supported customers through the recession and a subdued housing market, which had crimped margins and led to a rise in money set aside for bad debts.
However, he said Kiwibank had been increasing lending at double the rate of other banks and deposits grew 1.6 times faster.
"This growth underscores our commitment to driving competition that benefits everyday Kiwi and contributing to a productive economy by helping businesses to thrive."
However, its drive for market share, upgrading its technical systems to improve protection from scams, as well as improvements in physical branches saw a significant rise in its expenses.
Jurkovich said Kiwibank was looking to a broad uplift in business and the economy as interest rates continued to fall.
"The OCR (official cash rate) track signals more cuts to come which are needed for Kiwi households and businesses looking to borrow and to create momentum in the economy.
"The second half of 2025 should see growth gather pace, including a rebound in employment demand," he said.
The government has raised the prospect of injecting another $500 million in extra capital to strengthen the bank to compete more rigorously with the big four Australian-owned banks.
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