Chief executive says Kiwibank is aiming for substantial growth in the next five years
Kiwibank has posted its FY25 results, revealing lending growth of 10% in a challenging year. Net profit fell 5% to $191 million for the 12 months to June 2025.
Kiwibank’s total lending reached $35.8 billion after growing by $3.3 billion, with home lending up $2.3 billion and business lending surging by $1 billion. Deposits also climbed 8% to $30.3 billion as more customers chose Kiwibank over the major banks.
Chief executive Steve Jurkovich said the results demonstrate Kiwibank's commitment to backing customers through uncertain times, not just during market peaks.
"While conditions remained challenging across sectors, our strategy is about staying optimistic, consistently being open for business and supporting customers – not just in the good times, but especially in the tougher times," Jurkovich said. “That’s exactly what we’ve done.”
Kiwibank helped 9,018 first-home buyers get on the property ladder and assisted 5,752 customers refinance to better deals, continuing its aggressive push against the major banks in the mortgage space.
Adviser channel key to growth
Kiwibank's above-market growth comes from a multi-pronged approach, which includes consistently offering the lowest variable rate among major banks. Jurkovich said that its investment into technology and staying open during tougher times has also contributed.
It has also launched initiatives like StartUp+ funding for entrepreneurs while removing fees for standard open banking API requests.
Notably, Kiwibank’s mortgage adviser network has grown substantially, going from 250 active advisers in June 2022 to approximately 1,536 today.
Jurkovich said the adviser channel is "very important" to Kiwibank's growth plans, with adviser-originated loans potentially reaching 80% of business in coming years.
"Kiwibank sees significant opportunities in partnering with advisers, expecting the trend of adviser-originated loans to continue growing,” Jurkovich told NZ Adviser.
“We deeply value our relationships with advisers, and we will continue to invest in the channel, including enhancing our systems and processes and developing new digital solutions."
Commenting on improvements to mortgage processing times, Jurkovich noted that Kiwibank launched Fast Pre-approvals for home loans in February, aiming to inform advisers and customers of loan decisions within 48 hours. It's also developing a digital solution allowing advisers to submit applications directly from their CRM systems to Kiwibank's decision engine.
Technology and branch investment
Despite the digital push, Kiwibank has continued to expand its physical presence with the largest branch network in the country. Recent moves include opening in Newmarket's busy shopping centre and planning a new Kerikeri branch with Whangārei Central refurbishments.
"We believe strongly in technology to deliver convenience for customers, but recognise that being face to face with your banker in moments that matter is still highly valued by customers," Jurkovich said.
The bank delivered enhanced fraud protection and piloted its first product on a new core banking platform during the year, while also establishing a Business Adviser channel for complex commercial lending.
Growth ambitions
Looking ahead, Kiwibank aims to double its balance sheet again over the next five years after achieving this feat in the past five years. Cabinet approval for parent company Kiwi Group Capital to explore raising up to $500 million will support these expansion plans.
Jurkovich also welcomed this week's OCR cut as positive for homeowners and businesses, calling it "a strong signal of further easing ahead, aimed at supporting households and businesses amid a slowing economy."
"While global and domestic challenges remain, this sets the stage for a more resilient and confident recovery," he said.
