The bank also announces its 2023 Sustainability Report
Kiwibank has reported a full-year net profit after tax of $175 million, a 34% increase on the previous year and according to its chief executive, Steve Jurkovich (pictured above), the best in the bank’s history.
Below are the key figures for the 12 months ended June:
“Our purpose is to make Kiwi better off, and this result demonstrates the continued impact we are having as the largest New Zealand-owned bank,” Jurkovich said. “Taking a purpose-led approach to everything we do is having a positive effect on our culture and the way we show up for our customers. It’s great to see this being reflected in our full year and sustainability results.”
The New Zealand-owned bank grew its home lending by $1.1bn, which according to the Kiwibank boss was one-and-a-half times faster than the mortgage market. The result, he said, was fuelled by a strong first half but then eased due to cooling housing market conditions and surging interest rates.
Supporting customers
Jurkovich said the bank had taken significant action to support customers who were grappling with increased living costs.
“Our teams have contacted thousands of customers to discuss the options available to them – whether that’s extending loan terms, reducing payments, going interest only, or providing short-term cash injection to help get on top of their finances,” he said.
In a media release, Jurkovich said he was also pleased with Kiwibank’s business banking performance in FY23, which had become more visible in the market and stepped up to support Kiwi businesses when many lenders were pulling back.
“While business banking growth of $900 million was impacted by lower business confidence and general market uncertainty, we grew faster than the market, demonstrating our commitment to the New Zealand economy,” Jurkovich said.
The recent $225m capital investment into Kiwibank, he said, would enable the bank to have even greater impact by supporting more Kiwi firms to thrive.
Kiwibank’s 2023 Sustainability Report
Kiwibank’s 2023 Sustainability Report has also been released, detailing the progress the bank has made over the past 12 months to deliver on the bank’s purpose goals and sustainability commitments.
Report highlights included the following:
- 57,142 students in Tamariki have been provided access to quality financial education through Banqer
- 9,484 Kiwis have been supported to take action to secure their financial future
- More than $46m in sustainable finance have been lent to Kiwi businesses
- A 9% reduction on carbon emissions have been achieved based on FY21 baseline year
- 1,242 customers impacted by the North Island cyclone and flooding weather events have been provided relief
- More than 1,000 IT devices have been donated to community groups throughout Aotearoa
- Improved the accessibility of Kiwibank’s EFTPOS, credit and debit cards
- A financial wellbeing programme for Kiwibank people has been rolled out
- The bank’s company culture has improved by 8 points, ranking it in the top 25% of companies globally surveyed by Glint
Moving forward, Jurkovich said Kiwibank will put the recent $225 million capital investment into good use to support more Kiwi homeowners and businesses and drive more competition in the banking sector.
“By choosing Kiwibank, New Zealanders are choosing to keep more of the banking industry’s returns right here, and that means we can have even more impact for Aotearoa New Zealand,” he said.
See key highlights from the 2023 report or download the sustainability report for 2023.
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