Kiwibank donates more than $300,000 to cyclone relief as half-year profit rises by 58%

Kiwibank has announced a half-year profit after tax of $98 million, up 53% on the same time last year.

Chief executive Steven Jurkovich also said the bank was making more than $300,000 in donations to cyclone relief efforts.

Already, the bank had donated around $70,000 to relief efforts, including generators and fuel, but had committed to donating another $250,000.

The increase in after-tax profit for the six months to December 31 reflected a period in which the economy and households showed resilience, Jurkovich said.

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The last six months of the bank’s financial year, which ends on June 30, would be tougher, dominated by higher interest rates, rising inflation, and the recent extreme weather events in the North Island.

“We continue to encourage customers to contact us if they need to discuss their situation, and we’re contacting customers directly who we think may need support,” Jurkovich said.

“The exact support we can offer will depend on personal circumstances but could include reducing repayments to the minimum regular amount, restructuring the loan, extending the loan term or temporary interest-only repayments.”

The bank grew its share of the home loan market, Jurkovich said.

Jurkovich said the bank grew its home lending book by $600m during the first half, partly as a result of expanding to offer loans through mortgage brokers.

Flooding in Auckland and other parts of the country was raising questions about the future value of some homes, Jurkovich said.

But Kiwibank did not have “no go” areas where it would not provide mortgages for people to buy homes.

As yet, the bank was not declining home loans to flood-prone homes, but resilience to extreme weather was a conversation that was now taking place in every board meeting, he said.

“We haven’t made any no-go decisions,” Jurkovich said.

He said Kiwibank continued to make inroads into the business lending market, growing market share faster than its big rivals.

He said while business lending had returned to pre-Covid levels as confidence returned, the bank was taking action to support customers during this latest downturn.