The Co-operative Bank investing in the future

The Co-operative Bank investing for the future.

The Co-operative Bank says it is making significant investments in modernising technology and processes, removing fees and improving customer experiences to help ensure it keeps delivering long-term value to customer shareholders.

The Directors of The Co-operative Bank have today released the Annual Report and Disclosure Statement for the year ended 31 March 2025.

The customer-owned bank posted an underlying profit before rebates and tax of $16.9 million (down 16 per cent from $20.2 million in FY24). Reported profit before rebates and tax was $12.5 million, accounting for an increase of $4.4 million in provisions in relation to some of the Co-operative’s historic credit fees set under the Credit Contracts and Consumer Finance Act (CCCFA).

Chief Executive Mark Wilkshire said the main factors in the result have been tightening interest margins impacting interest income, and increased costs.

“Our expenses this year (excluding the CCCFA provision) were up $3 million (four per cent), driven by our investment in the future bank including preparing to replace the bank’s core technology platform, responding to regulatory change, and investment in helping to protect our customers from fraud and scams."

“The investments we are making in building the future bank will mean that profitability will continue to be lower in the short term but will set the Co-operative up to be more successful in the long term.”

Mark Wilkshire said the bank had made excellent progress towards replacing its core banking platform.

“This is a multi-year programme that will take advantage of the modern systems now available and will enable the bank to deliver innovative products and services for our customers in a faster, more dynamic way.”

Highlights for the year include winning the Consumer People’s Choice Award for the fourth year running as well as 6.1 per cent growth in mortgage lending and 4.2 per cent growth in term deposits.

“We are especially proud to have helped many New Zealanders into their first homes,” said Mark Wilkshire. “Forty-one per cent of customers who drew down home loans with The Co-operative Bank in the past year were first home buyers, above the market where around 29 per cent of borrowers were funding their first homes.”

The Co-operative Bank’s profits will remain in New Zealand, with $1.5 million to be shared with customers as profit rebates and the remainder to be reinvested in the co-operative. This takes the total paid in customer rebates since the Co-operative began its rebate initiative in 2013 to $24 million.