New Zealand Co-operative Bank shares NZD $2.5m profit with customers

The bank reported an underlying profit of $20.6m before rebates and tax

New Zealand’s Co-operative Bank dished out NZ$2.5m (£122m) in rebates to its members last month.

The rebate was announced in June, when the bank reported an underlying profit before rebates and tax of $20.6m (£9.9m). 

The bank also announced 5% growth in overall deposits, totalling $135m (£64.89m). Its mortgage lending grew by 8% with its mortgage portfolio growing by $204m (£98.05m), compared to $41m (£19.71) in the previous year.

The Wellington-based bank is completely owned by its customers, who are shareholders. It is the only bank in the country that shares its profits with customers as rebates.

Since the rebate initiative began in 2013, $20m (£9.61m) has been distributed to members.

Chief executive Mark Wilkshire said the rebates are an important way for the bank to demonstrate its  commitment to its customers. 

“We believe that there is a better banking model that works alongside customers and supports our customers to have greater financial security,” said Wilkshire.

“At the Co‑operative Bank, success is not singularly about profit. It’s about our customers, our communities and the enduring relationships we forge with them over their lives. For us, banking better means helping people into their homes, helping to protect them and their assets, and sharing the success as a bank along the journey and throughout their life.”

The bank’s annual report also showed an increase in “relationship customers” – those with three or more banking needs met, and/or a mortgage or significant deposits, by 2,078 to 75,911 during 2023.