Kiwibank's financial results and what they show about the banking market
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Kiwibank is reporting a 9% drop in annual profit.
It comes amid talk of a potential merger between Kiwibank and TSB Bank, if the current TSB-Heartland merger falls through.
The Crown-owned bank says it's dealing with a challenging economic environment.
Its net interest income —the gap between what it's receiving in interest and paying out in interest— has risen 1.7%.
Massey University's Professor Claire Matthews told Ryan Bridge that suggests they're having to cut what they're charging on their loans in order to get the lending they're getting.
She says that method is fine in the short term, but it's not maintainable in the long term.
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