Kiwibank profit falls 13%

The subsidiary of New Zealand Post reported net income of $45.8 million in the 12 months ended June 30, from $63.6 million a year earlier.

Interest income dropped 13% to $563.9 million, outpacing an 11% decline in interest expenses to $430.5 million, in a low-interest rate environment where lenders were forced to woo depositors to comply with pending prudential regulations.  

Earnings were "a little disappointing, but to be expected in a very tough financial environment," said chief executive Sam Knowles in a statement.

Kiwibank's performance was affected by the very strong competition in the retail deposit market, he said.