Kiwibank profitability

Last week the NBR published a Shoeshine column on the reported $500,000 annual Kiwibank loss, and how they discovered that over a quarter of their income, $38.2 million, is revenue NZ Post was earning before they even set up Kiwibank. It is their agency services fee.

Now this is hugely significant because it shows that Kiwibank is in fact losing huge amounts of money. Allocating revenue to Kiwibank which NZ Post was already earning is somewhat dodgy.

I’ve done a Google News search on Kiwibank and I’ve not seen any refutation of what NBR have claimed, and somewhat disturbingly, no other media carry this story. That is a shame, because on the face of it, this is a major embarrassment to the Government’s claims of how well Kiwibank is doing.