Kiwibank confirms needs for capital

Kiwibank received NZ$50 million in new capital from its owner, NZ Post, during the December 2011 the bank said yesterday and may still need more capital over and above retained earnings.

"The capital requirement for banks overall has gone up significantly," Paul Brock, chief executive of Kiwibank said at a media conference yesterday, and referring to the new capital rules for banks known as Basel III. The National Business Review reported Brock's remarks.

"The bulk of the capital required will come through retained earnings, but there will be a need for additional capital," he said.

The bank's total capital ratio at the end of 2011 was 12 per cent.  The bank has around NZ$9 billion in assets and NZ$824 in total capital.

Kiwibank reported a net profit of NZ$37.9 million for the December 2011 half, up from NZ$13.9 million for the same period in 2010.