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Kiwibank's unaudited September quarter profit drops 13% as expenses rise and income holds steady

Bonds
Kiwibank's unaudited September quarter profit drops 13% as expenses rise and income holds steady

Kiwibank posted a 13% fall in unaudited September quarter profit as operating expenses rose and income was flat.

The bank's profit after tax for the three months to September 30 fell $4 million, or 13%, to $26 million from the same quarter last year, Kiwibank's latest General Disclosure Statement shows.

The drop came as operating expenses rose $8 million, or 11%, to $80 million, and total operating income was unchanged at $114 million. Overall operating income was steady despite a drop of $2 million, or 3%, in net interest income to $69 million.

Meanwhile, the bank recorded reversals in impairments on loans, as opposed to losses, of $2 million compared to a loss of $1 million in the September quarter last year.

Kiwibank's total net loans and advances grew $244 million, or 1.8%, in the September quarter from June 30 to $13.446 billion. Total deposits from customers rose $37 million, or about 0.3%, to $12.157 billion with growth in demand deposits as term deposits dropped $101 million, or 1.1%, to $8.789 billion.

Total assets increased $455 million, or 3%, in the three months to September 30 to $15.664 billion, with total liabilities also up 3%, or $429 million, to $14.780 billion. Assets at least 90 days past due but not impaired were unchanged at $17 million, with gross impaired assets all but halving to $43 million from $84 million.

Kiwibank's capital adequacy ratios

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