Kiwibank

An improved interim profit from Kiwibank in the six months to December helped save face for its parent New Zealand Post, which continues to suffer from falling letter volumes and revenue.

A tight control of costs helped Government-owned Kiwibank report an operating profit of $111 million for the year ended June, nearly three and a-half times the profit reported last year.

A glitch in Kiwibank's system that caused disruptions to processing and access to internet and phone banking has been resolved, the bank says.

New Zealand Post is working quickly to move into the digital age as fewer letters are posted and customers look for change.

Kiwibank's first half profit at $37.9 million has rebounded strongly from $13.9m for the comparable period a year ago.

Further consolidation of KiwiSaver providers is likely after the announcement yesterday that Government-owned Kiwibank has bought Gareth Morgan Investments' businesses.

State-owned lender Kiwibank has extended its mark in the funds management business with the acquisition of high profile KiwiSaver funds manager, Gareth Morgan Investments.

Kiwibank's smart car, dubbed "Raymond", will be in Queenstown this week as part of a nationwide road trip seeking nominations for the 2012 Kiwibank New Zealander of the Year Awards.

Kiwibank says a 5.4 percent six-month fixed rate mortgage special launched today is the lowest home loan rate it has offered since opening more than nine years ago.