Kiwi Group Holdings, which includes insurance businesses and funds management, has reported a net profit after tax of $58 million, a big drop from $131 million last year.
The group’s unaudited underlying profit was at $129 million, down 1.5% from the $131 million in the prior comparative period.
Group Chief Executive Paul Brock said maintaining similar levels of underlying profitability to last year’s performance is very pleasing – despite a number of external disruptions including November’s earthquake as well as regulatory challenges.
In the year ended in June, the group has incurred $6 million of earthquake costs as a result of the Kaikoura earthquake net of insurance payments received.
According to the group, the results for the year ended in June have been significantly impacted by an impairment of $90 million relating to the work in progress on the IT project, CoreMod.
The KiwiBank, which provides the bulk of the group’s earnings, registered an unaudited net profit after tax of $53 million and an unaudited underlying profit of $122 million.
Its customer deposits were up 8.1% to $16.0 billion, from $14.8 billion. The group also has continued to build presence in the SME sector, with 8.0% market share at the end of June.
Overall, Brock said profitability across the group was commensurate with the operating environment, levels of investment and work underway to deliver on their ambitions.
“We’re positioning ourselves to take full advantage of the opportunities in front of us, predominantly with a digital focus – we’re committed to our customers and long term value creation for our shareholders,” said Brock.
Its businesses including Kiwi Insure, Kiwi Wealth, and New Zealand Home Loans have also experienced growth, particularly the Wealth division with nearly $4 billion of invested funds and serves over 158,000 KiwiSaver customers.
Related stories:
AUB Group announces profit increase
Suncorp sees NZ profit dip
