(Includes commentary from CEO Steve Jurkovich)
Kiwibank grew its loan book by 10% in the June year, but slimmer margins saw profit ease 5%.
The bank reported a $191 million profit and said strong balance sheet growth was offset by a lower net interest margin in "a challenging economic environment."
Lending growth of $3.3 billion was split $2.3 billion to home loans and $1 billion to businesses.
CEO Steve Jurkovich said Kiwibank's business lending growth was far stronger than banks generally. Some banks' business lending had shrunk.
Kiwibank had in fact a book of loans which had been approved, but not yet drawn down by businesses "sitting on the fence" in an uncertain economic environment.
Kiwibank has been given to go-ahead by the Government to raise $500 million in new capital from New Zealand institutional investors, by 30 June 2026.
Jurkovich said the bank had spoken to around 20 investors initially and was now completing due diligence documents that would go out "in the next couple of weeks."
"It's year-end, so our information is 'hot off the press.'"
Investors would have "a couple of months" to review these and come back.
The bank said the mortgage split was 9,018 new loans and 5,752 refinances.
The deposit book rose by 8% to $30.3 billion.
Jurkovich said business banking was a standout in a subdued market, and "a clear signal of our commitment to backing Kiwi businesses through uncertain times."
"At the same time we continued building the Kiwibank of the future by investing to be more adaptable and customer-focused."
Net interest income was $858 million, up from $824 million a year ago.
Total operating income lifted to $912 million, from $880 million a year ago. Operating expenses were $619 million, up from $582 million.
Loans and advances at June 30 were $35.84 billion, up 10.4% from $32.44 billion in June 2024.
Credit impairment charges stood at $29 million, up from $24 million a year ago.
Kiwibank's media release is here and its annual report and disclosure statement is here.
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