Kiwibank substantially boosted its parent New Zealand
Post's profit for the year ended June, with figures supplied to
the market showing NZ Post would have barely broken even
without the bank's contribution.
NZ Post reported a profit after tax of $107 million for the
year, down from the $121 million reported at the
corresponding time last year.
The profit last year was bolstered by a gain of $72 million
from the sale of Datacom.
KiwiBank also reported an after-tax profit of $107 million,
up 3% on the previous corresponding period, with the bulk of
the profit made up by the banking group.
NZ Post did not provided detailed financial accounts to the
Otago Daily Times, saying they would be released in
the annual report being released in a month or so.
But it appears the $107 million of profit it reported came
from the $107 million profit reported by KiwiBank.
NZ Post reported revenue of $1.66 billion for the period
under review, down from the $1.69 billion received in the
Expenditure fell to $1.5 billion from $1.6 billon to give an
earnings before interest and tax (ebit) of $187 million, up
nearly 15% on the pcp.
NZ Post also reported an operating profit after tax of $124
million for the year, up 11.7% on the pcp.
That profit was driven by lower structural costs, growth in
the parcels and logistics business and KiwiBank.
KiwiBank increased its interest revenue slightly to $798
million for the period, up from $790 millon.
Other income rose to $183 million but operating expenses
increased by $40 million to $344 million.
Profit before tax was up slightly to $139 million.
NZ Post chief executive Brian Roche said the better operating
performance was an encouraging validation of NZ Post's
strategy so far as the group started rebuilding sustainable
Transformation from a traditional postal service business
would continue and the group expected to make further
progress this year.
For the first time in NZ Post's history, revenue from
packages and parcels exceeded that derived from letters.
''This marks a significant moment for us and reinforces the
need to make the changes we have embarked on.''
KiwiBank chief executive Paul Brock emphasised that the
rising contribution of the financial services group to the
performance of the NZ Post group.
Focusing on the bank's performance, Mr Brock said loans and
deposits showed healthy growth with the bank lifting its
share in key markets.
The bank increased loans and advances by 10.6% from $13.2
billion to $14.6 billion.
Customer deposits increased by 5.8% from $12.1 billion to
''This brings with it special challenges to ensure we
maintain profitable growth as well as continuing to provide
excellent customer service and that we operate where our
customers are - both face to face and in an increasingly
There would be about $100 million spent over the next four
years on the bank's infrastructure, upgrading the core
Investor confidence in the bank was reinforced with a
successful capital note offer in May.
The issue raised $100 million and contributed to a total
capital ratio of 12.9% at the end of June, Mr Brock said.