CEO shares the strategic initiatives boosted company performance
Kiwibank has reported a record net profit after tax of $202 million for the financial year ending June 30, 2024 (FY24). The result marks a 15% increase from the previous year, marking the best performance in the bank’s history, according to a company statement.
Chief executive Steve Jurkovich (pictured) announced the results, emphasising that Kiwibank’s ongoing success is built on its role as a market disruptor in New Zealand’s banking sector. “For the fifth consecutive year, Kiwibank has improved its profitability and grown faster than our competition,” Jurkovich said. “We are fulfilling our role as a disruptor, more Kiwi are choosing us, and momentum is on our side.”
The bank saw significant gains across key financial metrics, despite the challenging economic environment. Kiwibank achieved net lending growth of $2.8 billion, expanding its lending portfolio by 9.3% to $32.4 billion. Home lending grew 2.7 times faster than the market, while business lending expanded at three times the market rate. Additionally, customer deposits increased by $2.4 billion, bringing the total to $28.2 billion—a growth rate of 9.4%, which is 2.6 times faster than the market.
Jurkovich credited the bank’s ability to build and maintain customer trust during the past year, citing Kiwibank’s recognition as the number one bank in the 2024 Kantar Corporate Reputation Index as further evidence of the bank’s success.
Sustained growth through strategic investments
Beyond financial performance, Kiwibank highlighted its ongoing commitment to sustainability and climate action. The bank released its 2024 Sustainability Report and its first Climate Statement, outlining its progress toward long-term sustainability goals. Key achievements include supporting more than 45,000 Kiwis in securing their financial futures, providing $177 million in sustainable finance to businesses, and reducing operational emissions by 29% since 2021.
“These reports demonstrate the progress we’ve made towards our purpose and sustainability goals, which are a key measure of our performance, and the action we are taking to build Kiwibank’s climate resilience,” Jurkovich said.
Kiwibank has also prioritized strengthening its fraud prevention systems, investing in upgraded monitoring systems to enhance real-time fraud detection and blocking. The bank has expanded its fraud prevention team and is collaborating with other banks through industry initiatives, such as the roll-out of the Confirmation of Payee feature and the establishment of the Anti-Scam Centre.
Looking ahead, Jurkovich expressed optimism about the future, particularly in light of the Reserve Bank of New Zealand’s (RBNZ) recent decision to cut the Official Cash Rate (OCR). He projected that the anticipated series of rate cuts would benefit Kiwi households and businesses, contributing to a more positive economic outlook in 2025.
Jurkovich also addressed the Commerce Commission’s recent market study on personal banking services, reaffirming Kiwibank’s readiness to compete with New Zealand’s largest banks. With a $225 million capital injection from its shareholder, Kiwi Group Capital, Kiwibank is focused on a multi-year transformation to deliver scalable systems and accelerate growth.
Do you have something to say about these results? Let us know in the comments below.
