Kiwibank's need for more capital becomes more evident

Chief executive Steve Jurkovich said credit law change is finally slowing housing. (Image: supplied)

Fri, 25 Feb 2022

Kiwibank has stood out as the country's least well-capitalised bank for some time now and the latest results show while its total capital increased, its common equity ratio fell slightly.That's even after the bank reported a 16% rise in first-half net profit to $64 million for the six months ended December.There are two ways for a bank to increase equity; it can earn more and retain those earnings, or its shareholders can provide it with more capital.But Kiwibank is growing its loan book faster than it is accumulating earnings – l...

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