Kiwibank decides against raising more capital

Monday, 22 December 2025

Kiwibank’s parent, Kiwi Group Capital, says it doesn’t need to raise further growth capital for now.

In a statement on Friday, Kiwibank said it was not proceeding with a previously-signalled equity capital raise, saying recent changes to the Reserve Bank’s capital requirements meant it did not require additional equity to support its current growth trajectory.

“The changes to the Reserve Bank of New Zealand’s capital requirements, combined with Kiwibank’s recent highly successful $400 million Tier 2 capital raise at an attractive price, means that Kiwibank can now continue its strong growth without the need for additional equity,” an announcement on Friday from Kiwibank said.

“Kiwibank is in a strong position to continue growing and challenging the larger banks,” it said.

Prospective investor feedback from the likes of KiwiSaver funds had been positive on Kiwibank’s performance and strategy.

Details of the capital raise remained “commercially sensitive”, it said.

When Kiwi Group Capital started the capital raise process, it was unclear whether the Reserve Bank would review its capital settings, Kiwibank has told investors.

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But the bank remained open to the idea of future public capital raise by selling shares in the bank through an IPO, or initial public offering.

“While Kiwibank is not raising equity at this time, the idea of New Zealanders owning a stake in the bank is something that would be evaluated by Kiwi Capital Group and the Crown at an appropriate time in the future,” Kiwibank said.

Despite the capital raise not going ahead, Kiwibank said it remained committed to building what it called “a more dynamic, competitive banking sector that works harder for New Zealanders”.