Kiwibank after-tax profit slips but bank staying ‘optimistic’

Thursday, 21 August 2025

Kiwibank could one day be listed on the NZX for KiwiSaver funds to invest in.

Kiwibank has announced a 5% drop in after-tax profit.

The $191 million after-tax profit is compared to $202m in its previous financial year, which was its best-ever result.

Kiwibank chief executive Steve Jurkovich said: “While conditions remained challenging across sectors, our strategy is about staying optimistic, consistently being open for business and supporting customers – not just in the good times, but especially in the tougher times.”

‘We delivered strong underlying growth in the highly competitive home lending and deposit markets. Business banking was a stand-out in a subdued market and a clear signal of our commitment to backing Kiwi businesses through uncertain times.,“ he said.

The bank lent $1b to businesses during the financial year, which ended on June 30, however, it experienced lower net interest margins.

In July, the bank, which is the last of the big five to be headquartered in Wellington, was given formal approval to raise $500 million in new capital to expand by Finance Minister Nicola Willis after a feasibility study concluded there was sufficient appetite among investors to stump up the cash.

Finance Minister Nicola Willis says listing Kiwibank could help raise capital — but any sale would need to preserve its Kiwi identity.

Willis said a future National government might choose to publicly list Kiwibank on the stock market, but that wouldn’t happen without an electoral mandate.

Kiwibank parent company Kiwi Group Capital (KGC) had until the end of June next year to complete a capital raise, which would be subject to the final approval of ministers.

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

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

Kiwibank chief executive Steve Jurkovich.

“But this is about more than scale, it’s about delivering better outcomes for all New Zealanders, whether they bank with us or not,” he said.

Jurkovich said: “Over the past 12 months, we delivered key advancements including enhanced fraud protection, faster lending decisions for small businesses, and piloted our first product on a new core banking platform.”

Despite investing in technology, Kiwibank was investing in its branch network, he said, which was the largest of any bank in the country.

During the year it had opened a branch in Newmarket Mall in Auckland, and had a new branch planned for Kerikeri in Northland, and would refurbish its Whangārei Central branch.