The move follows the bank owners' "strategic portfolio-reshaping actions" last year
The owner of Kiwibank has invested $225 million to accelerate the growth of the largest New Zealand-owned bank.
Kiwi Group Capital, which was established in 2022 as a holding company that acquires and oversees the Crown’s investment in Kiwibank and New Zealand Home Loans, subscribed to an additional $225 million of common equity share capital issued by Kiwibank on July 31.
The investment came from the proceeds of the sale of Kiwi Wealth to Fisher Funds for $310 million late last year.
David McLean (pictured below), KGC chair, said the investment represented the next step in the Kiwibank owners’ “strategic portfolio-reshaping actions” following the divestment of Kiwi Wealth and Kiwi Insurance over the past year, which allowed them to focus on Kiwibank’s core banking business.
“This investment generates long-term value for shareholders and is well-aligned with KGC’s strategic objective to help Kiwibank provide a competitive banking alternative for New Zealanders,” McLean said.
Steve Jurkovich (pictured above), Kiwibank CEO, said the $225 million investment was significant and an expression of shareholder confidence in the largest New Zealand-owned bank.
“This capital injection will enable Kiwibank to continue to deliver on its growth ambitions by supporting Kiwi with their home ownership aspirations and backing local businesses to thrive,” Jurkovich said.
“Kiwibank has a unique role to play in the New Zealand banking sector and this is another important step in strengthening our position further in the market.”
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