Kiwibank has reported a solid half-year profit of $55 million, on the back of strong lending and customer deposits.
(File image) Photo: RNZ / Cole Eastham-Farrelly
The result for the six months to December is up 8 percent on the same time last year.
Chief executive Steve Jurkovich said business and home lending grew by $1.6 billion, while customer deposits were up $1.3bn.
He said the rise in bad debts, due to the Covid-19 fallout, had not been as bad as feared.
"We had forecast a significant rise in mortgage and business banking loan defaults, but numbers remain very low largely thanks to the hard mahi of all New Zealanders to contain the virus and keep our economy moving," Jurkovich said.
"We remain prepared to assist our customers and support New Zealand's recovery."
The bank does plan to close seven of its branches this year due to dwindling visitor numbers.
Jurkovich said more customers were choosing to bank digitally and some branch customer visits had halved in the past five years.
The proposed branch closures are in Balclutha, Gisborne, The Palms in Christchurch, Matamata, Onehunga, Waihi, and Waipukurau.
"We appreciate the proposed changes can create uncertainty for our people, our customers, and communities and that's why there is a period of time so we can make fully informed decisions," he said.
"We continue to offer all customers support to understand and use faster, safer and cheaper methods of banking, including telephone banking, mobile and internet banking, direct debits and guidance on how to set up automatic payments."