Kiwibank reported a profit of only NZ$1 million for the March 2011 quarter as the government-owned bank took a NZ$26 million charge for bad debts - practically all of it needed to cover provisions for losses following the February 2011 earthquake in Canterbury.The bank's quarterly disclosure document noted that estimates needed to cover quake losses "are highly subjective and loss estimates range from NZ$10 million to NZ$45 million."Loan growth was 2.3 per cent for the quarter, though this growth has had to be funded by an increase of NZ$200 million in term debt from wholesale markets as the deposit book has declined.Deposits were NZ$10.9 billion at March 2011, down from NZ$11.1 billion in December 2010.