Mortgages

Kiwibank adds $250m to loan book

Kiwibank has more than doubled both its latest quarterly and annual net profit and continues to grow its share of the mortgage market, consolidating its position of being the fifth largest home lending registered bank.

Tuesday, September 05th 2006

The bank's net profit in the June quarter rose to almost $5 million from $2.33 million in the same quarter latest year, bringing its annual result to $15.8 million compared with $7.2 million last year.
Net interest income was up 50.3% to $15.2 million in the latest quarter and other income was up 30.1% to $26 million while operating expenses rose only 28.6% to $33.6 million.
Kiwibank's share of the mortgage market rose by $250 million to $2.51 billion during the quarter, taking its market share from 1.91% to 2.05% at the end of March. At the end of June last year, its mortgage book stood at $1.53 billion giving it 1.43% of mortgages written by registered banks.
Kiwibank chief executive Sam Knowles says his bank is aiming to increase its mortgage market share by about a percentage point a year.
ASB Bank, now New Zealand's largest bank (classing National and ANZ as separate banks although ANZ owns both), is "a good role model" in that it was quite small 15 or 20 years ago and has grown organically, Knowles says.
Kiwibank has overtaken both HSBC and TSB Bank in terms of market share. While it is the fifth biggest bank, but it is still a long way fourth placed Bank of New Zealand, which claimed 16.27% of the market at June 30.
Neither NZ Post nor the government has imposed any limits on Kiwibank's growth, Knowles says.
Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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