Transcript Kiwibank PPoint template JUNE12

MEDIA
BRIEFING
Financial Results – 6 months ended 31
December 2012
Topics Covered

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




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Key Achievements
Profit Performance
Balance Sheet Growth
Key Ratios
Capital Adequacy
Credit Quality
Credit Rating
Business Banking
Kiwi Group Holdings
Awards
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Key achievements

Profit after tax of $58m for the 6 months ended 31
December 2012, a 53% increase on profit for the 6
months to 31 December 2011 of $38m

Continued growth in balance sheet since December 2011:


Lending increased 6% from $12.1bn to $12.8bn

Customer
$12.3bn

Continued customer growth
deposits
increased
5%
from
$11.7bn
to
Kiwibank successfully issued a $150m subordinated bond
into the domestic market.
Despite being the first
offer in New Zealand under the new Basel III capital
rules, the bond was heavily over subscribed reflecting
investor confidence in the Bank
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Financial Performance – Profit &
Loss


Continued growth in profitability
Aided by favourable exit of impaired loans in the 6
months
Dollars in millions
31 Dec 2012
31 Dec
2011
Net interest income
140
123
87
81
227
204
11%
(147)
(151)
(3%)
80
53
51%
(22)
(15)
58
38
Other income
Total operating revenue
Total expenses
Profit before tax
Income tax expense
Profit after tax
% growth
53%
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Financial Performance-Historical
Summary
Dollars in millions
31 Dec 2012
31 Dec 2011
31 Dec 2010
31 Dec 2009
31 Dec 2008
400
381
348
268
362
(260)
(258)
(259)
(202)
(283)
140
123
89
66
79
87
81
80
88
75
227
204
169
154
154
(147)
(133)
(118)
(111)
(110)
-
(18)
(31)
(10)
(6)
80
53
20
33
38
(22)
(15)
(6)
(9)
(12)
58
38
14
24
26
Financial performance
Interest income
Interest expense
Net interest income
Other income
Total operating revenue
Operating expenses
Impairment allowances
Net profit before taxation
Income tax expense
Net profit after taxation
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Financial Performance-Balance sheet
 Strong loan growth continues in competitive market
 Matched by demand for Kiwibank’s retail deposit
products
Dollars in millions
Assets
Loans and advances
Wholesale & other assets
Total assets
Financed by:
Liabilities
Customer deposits
Securities issued & other
liabilities
Total Liabilities
Shareholder's equity
Total liabilities and
shareholder's equity
31 Dec
2012
31 Dec
2011
12,842
2,390
15,232
12,068
2,318
14,386
6%
12,286
11,716
5%
2,137
14,423
1,971
13,687
5%
809
699
16%
15,232
14,386
% growth
6%
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Financial Performance (key ratios)
Ratios in percentage terms
Profitability measures
Net interest inc./average interest bearing
assets
Net profit after tax/avg shareholder's
funds
31 Dec
2012
31 Dec
2011
1.91%
1.74%
15.4%
11.6%
64.5%
65.1%
2.0%
1.9%
13.5%
12.0%
Efficiency measures
Operating expenses/total income
Operating expenses/average total assets
Capital ratios
Total capital ratio (Pillar 1)
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Financial Performance-Capital
Adequacy
 Total Capital ratio under Basel II is 13.5%
compared to
RBNZ’s minimum regulatory capital ratio of 8%

Total capital increased by $156m
increase from 31 December 2011

$150m subordinated bond issue in December 2012, heavily
oversubscribed
to
$980m,
a
19%
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Credit Quality (Impaired Assets)

The table shows total
impaired assets as a % of
gross loans and advances
from Disclosure Statements
dated 30 September 2012.
Kiwibank remains favourably
placed against other banks

Continued improvement in the
quality of Kiwibank’s loan
portfolio

Impaired assets of $56m at
31 December 2012 include all
assets where interest
charges have been suspended
and a specific provision has
been raised. Down from
$100m at 31 December 2011.
Bank
31
December
2012
Kiwibank
0.43%
ASB
BNZ
Westpac
ANZ
Source: 30 September 2012 Disclosure
Statements.
31 December 2012 not yet
available.
30
September
2012
0.55%
0.71%
0.77%
1.43%
1.55%
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Kiwibank credit rating
In October 2012, Standard & Poor’s lowered Kiwibank’s
credit rating one point to A+ (outlook stable).
This
mirrored the rating change to the Bank’s owner, New
Zealand Post.
The rating is among the highest
operating throughout the world.
of
the
trading
banks
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Kiwibank business banking
Business Banking: A growth sector
 We serve business and all their related personal needs
 Target market is New Zealand SME’s. They represent
over 90% of Kiwi business (Source: NZ Statistics, Feb
2013) and are core to our economy.

Today we have 33,000 businesses and have grown by 8%
over the last year

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There are 115 Kiwibank business specialists nationwide

Our current and future focus is to enable our customers
to spend more time on their business by making their
banking easy.
We have a full suite of banking
specialised business products
services
including
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Kiwi Group Holdings
Kiwibank is owned by Kiwi Group Holdings, which in turn is
fully owned by New Zealand Post.
Kiwibank’s sister
companies in Kiwi Group Holdings are New Zealand Home
Loans
(NZHL),
Kiwi
Insurance,
and
Gareth
Morgan
Investments (GMI).
As at 31 December 2012:

NZHL had signed up $1 billion in home lending for the
year

Group KiwiSaver (GMI and Kiwibank) had circa $1 billion
in investments and over 60,000 members

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GMI’s Funds Under Management grew to over $1.7 billion
Kiwi Insurance posted a profit of $1.9 million in 2012
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Awards

2012 Reader’s Digest New Zealand – New Zealand’s Most
Trusted Bank Brand – 6 years in a row

Roy Morgan Research 2012 Customer Satisfaction Awards –
Major Bank of the Year

2012 CANSTAR Awards

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Best Value New Zealand Term Deposits
2012 Sunday-Star Times Canstar Cannex Bank of the Year
Awards
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First Home Buyer
Most Price Competitive Bank
Sunday-Star Times Bank of the Year 2012
2012 NZ Innovators Award – Marketing and Communications
2012 TVNZ NZ Marketing Industry Award
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