Kiwibank profits up as home loan customers turn from rivals

Kiwibank reported an after tax profit of NZ$25.8 million in the six months to December 31, 2008, up from NZ$22.7 million in the same period in 2007. The state-owned bank's total lending grew 25% to NZ$7 billion between the two periods and retail deposits increased 31% to NZ$6.3 billion. Kiwibank CEO Sam Knowles said there was a significant increase in property owners switching their loans from existing banks to Kiwibank's floating rates. The result was "satisfactory in a challenging financial environment," Knowles said. We will update this story as we receive more information.