KiwiSaver growth fuels 33% profit jump at Generate

Accounts filed with the Companies Office show the company’s net profit for the year ended March 31 jumped more than 33% to $6.1 million with fee revenue rising at a slightly faster 36.5% pace to $77.9 million.

Chief executive Henry Tongue says it isn’t just the latest year and that his company has been growing at a compound annual rate of about 35% for the last five years.

Generate’s primary product is its KiwiSaver scheme introduced 12 years ago and Tongue says it added more than 20,000 new members in the latest year, taking its KiwiSaver customers to 172,000.

The company derived $77.2 million in fees from the KiwiSaver product in the latest financial year, up from $56.8 million the previous year.
It’s much smaller unit trust, which was started about three years ago, more than doubled fee income to $738,418 in the latest year, up from $331,514 the previous year.