Kiwibank's shareholders green-light capital-hungry growth plans

Steve Jurkovich

“The shareholders have signed off the business plan that sees us growing above-system in the next year,” chief executive Steve Jurkovich says.

Lending growth in the year ended June meant Kiwibank’s tier 1 common equity fell to 12.4 percent of risk-weighted assets at June 30 from 13.4 percent a year earlier.

In particular, Kiwibank’s mortgage book grew by $1.83 billion to $18.8 billion in the year ended June, giving it 11.6 percent of new mortgage lending in the year when its market share is only just over 7 percent, based on Reserve Bank figures.

That was a more than fourfold increase on Kiwibank’s new mortgage lending of $438 million the previous year when it accounted for only 3.2 percent of total new mortgage lending.