Kiwibank posts $174m profit as lending & deposits grow

Kiwibank reported net profit after tax of $174 million for FY26 as it expanded home, business and deposit balances faster than its larger rivals.

Total lending rose $3.1 billion to $38.9 billion over the year, with retail home lending up $2.1 billion and business lending up $1.0 billion. Deposits increased $2.4 billion to $32.7 billion.

Profit fell to $165 million in FY26 from $191 million in FY25, which the bank attributed mainly to a lower net interest margin. Even so, customer growth continued across home loans, business banking and savings.

Chief Executive Steve Jurkovich said the economic backdrop remained difficult, but customer demand had stayed firm.

"Regardless of the economy, our focus remains on maintaining momentum through customer and market share growth while helping more Kiwi be better off. More customers choosing Kiwibank for their home loans, business banking, and to grow their savings shows that more Kiwi are looking for a bank that makes banking fairer and creates better outcomes for them," Jurkovich said.

Kiwibank used the annual result to press its argument that competition in New Zealand banking remains uneven, particularly in savings products. Many households and businesses do not receive advertised savings rates because of product conditions, it said.

"Kiwi households and businesses could be missing out on around $500 million every year in interest. That's because many customers with savings accounts don't get the headline interest rate when they don't meet complicated conditions that don't reflect the reality of how most Kiwi live.

"Kiwibank customers with a Retail or Business Online Call account receive the full interest rate without having to jump through any hoops," Jurkovich said.

Home lending

Kiwibank said it helped nearly 8,000 people into home ownership during the year, including more than 3,200 first-home buyers. It also supported nearly 5,500 customers to refinance their lending.

Advisers remained a key channel for customers seeking mortgages or reviewing borrowing options. Kiwibank said it continued to strengthen ties with home loan and business advisers while expanding its business banking teams.

"Most Kiwi choose an adviser when they're buying a home or looking for options on their lending. Whether customers work with an adviser or one of our home lending experts, our focus is on helping them find the right solution and giving them confidence they're getting a great outcome.

"We value the partnership we have with advisers, which is why we will continue to invest in making it easier for them to work with us. In the past 12 months, we've continued to strengthen our relationships with the business and home loan adviser market and expanded our business banking teams to broaden the expertise available to advisers and their customers. That's how we've reached more customers and helped increase competition in the home lending and business banking market," Jurkovich said.

Technology spend

Alongside balance-sheet growth, Kiwibank said it continued to invest in technology and its branch network. This included progress on a new core banking platform, upgrades to digital security and fraud detection, and the use of AI tools in customer service operations.

It also invested in its physical presence, including a new branch in Kerikeri and refurbishments across the country. The bank described its network as New Zealand's largest physical banking network.

"We are investing more than ever to build a more modern Kiwibank that can be faster and easier for customers and bring greater competition to the market. Technology is critical, but so is access to people when it matters most. That's why we continued to enhance our digital capabilities and made significant investments in New Zealand's largest physical banking network, including opening a new branch in Kerikeri and refurbishing branches across the country," Jurkovich said.

Kiwibank appears to be gaining ground in core retail and business banking markets even as earnings came under pressure from margin compression. Its latest performance also highlights the importance of deposit growth as banks compete for household savings and business balances in a tighter economic environment.

"We're focused on helping more Kiwi get ahead financially, supporting more businesses to invest and grow, and continuing to challenge the status quo in banking. The stronger Kiwibank becomes, the stronger the competition we will bring to the market, and that's good for Kiwi and good for New Zealand," Jurkovich said.