After 11 years of calling on its parent New Zealand Post for capital support, Kiwibank says it is almost self sufficient. The milestone couldn't come a moment too soon as New Zealand Post's own profits dive in line with mail volumes.Kiwibank reported a record annual net profit for the year to June 30 of NZ$97 million, up 22.8 per cent from the previous year as it grew mortgage market share and began pushing into small business lending while also increasing its net interest margin. Kiwibank grew lending by 6.5 per cent, which was slightly faster than banking system growth of around 5 per cent and lifted its market share to around 10 per cent. Customer deposit growth of 4.3 per cent was below system growth of around 6 per cent. The government owned bank also increased its net interest margin to 1.81 per cent from 1.8 per cent over the year and increased customer numbers to around 850,000 from just under 800,000 a year ago.Kiwibank Chief Executive Paul Brock said the bank was almost at the point where it was self sufficient for capital. During the year the bank raised NZ$108 million worth of tier two Capital through a subordinated debt issue recognised under Basel III rules by the Reserve Bank, helping to increase its capital 20 per cent to NZ$942 million.Brock said however that a longer term discussion about Kiwibank's capital outlook would eventually be needed. He declined to elaborate, but the chair, Michael Cullen, has previously raised the prospect of an investment by the New Zealand Superannuation Fund or other state-owned funds. NZ Post reported a 30 per cent fall in net profit for the year to June 30 to NZ$121 million, which included the Kiwibank result and followed an accelerated decline in mail volumes. It has proposed shifting to three times a week mail delivery and is shedding hundreds of jobs in a restructure designed to reduce costs as fast as its revenues are falling.Kiwibank has yet to pay a dividend since it was founded in 2001 and the increasingly stressed state of its parent is a challenge. Kiwibank's credit rating was cut this year to A+ from AA- because of a cut in the rating of its parent.