Kiwibank profit down as lending rises

Thursday, 21 August 2025

Kiwibank reported a 5% drop in net profit after tax for the year to June, while lending rose 10%.

Government-owned Kiwibank’s annual net profit after tax dropped 5% to $191 million, while lending rose 10% to $35.8 billion.

The $3.3b growth in lending in the year to June included growth in home lending of $2.3b, and growth of $1b in business lending, the bank said on Thursday.

“Strong balance sheet growth was offset by a lower net interest margin in a challenging economic environment,” the bank said in a statement.

The deposit book grew 8% to $30.3b.

“Business banking was a standout in a subdued market and a clear signal of our commitment to backing Kiwi businesses through uncertain times,” Kiwibank chief executive Steve Jurkovich said.

“Over the past five years, Kiwibank has doubled its balance sheet, and we’re aiming to do it again,” he said.

“Cabinet’s approval for our parent company Kiwi Group Capital (KGC) to explore a capital raise of up to $500m is designed to accelerate our growth and strengthen our competitive edge.”