Kiwibank's mortgage growth momentum slows; need $200m in fresh capital
That's despite the bank's special promotions, including its 4.99% one-year fixed "special," which it said garnered significantly more than $200 million in new business in May.
In releasing the bank's results, chief executive Paul Brock also confirmed Kiwibank will need about $200 million of fresh capital to meet the Reserve Bank's new capital adequacy requirements.
The exact amount will depend on the new rules and the timeline will be staggered over the next three or four years, Brock says.
Clearly, some of that will need to come from its parent, New Zealand Post, or the government: "I don't think there will be enough retained earnings to make up all of it," Brock says.
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