Kiwibank will need about NZ$200 million in capital over the next few years, the bank's CEO, Paul Brock, indicated yesterday.
Brock said the bank needs "ball-park, yes, [that amount] of fresh capital to meet the Reserve Bank's new capital adequacy requirements."
"I don't think there will be enough retained earnings to make up all of it," Brock said.
New Zealand Post (which is owned by the NZ government) or the government itself will have to find the capital if the bank is to continue to grow in line with plans. Another option is to sell shares in the bank.
The amount of capital needed will depend on the new rules, and the timeline will be staggered over the next three or four years, Brock said. Mortgagerates.co.nz reported on Brock's comments.
Kiwibank reported a net profit for the year to June 2012 of NZ$79 million, more than three times the profit reported in 2011.
The bank's return on equity for the year was 12 per cent and its return on assets 0.5 per cent.
- Kiwibank updates capital needs
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23 August 2012 6:51am
