Radio New Zealand - Te Reo Irirangi o Aotearoa

NZ Post profit up but letters down

Updated at 6:42 pm on 25 February 2013

New Zealand Post has reported a rise in profit boosted by Kiwibank but there were mixed results across its financial services, logistics and mail businesses.

The state postal operator's profit rose 68% to $59.6 million in the six months to December, compared with $35.4 million for the same period a year ago. Revenue rose 30% to $872 million.

Chief executive Brian Roche says Kiwibank performed well in a highly competitive market, particularly in the face of aggressive competition in the home loan environment.

Kiwibank's half-year profit rose by more than half to $58 million dollars due to growth in it's lending and customer deposits.

Total lending increased 3% to $12.8 billion while customer deposits grew 6% to $12.3 billion.

But there were mixed results across the logistics and mail businesses, with the benefits of the full consolidation of Express Couriers Ltd following the acquisition of the remaining 50% of the business last June, reflected in the results.

However, that was offset by a continued decline in letter volumes and revenue.

New Zealand Post will pay an interim dividend to the Government of $2.5 million for the period.

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