MEDIA BRIEFING Financial Results – 6 months ended 31 December 2012

Topics Covered  Key Achievements  Profit Performance  Balance Sheet Growth  Key Ratios  Capital Adequacy  Credit Quality  Credit Rating  Business Banking  Kiwi Group Holdings  Awards 2

Key achievements  Profit after tax of $58m for the 6 months ended 31 December 2012, a 53% increase on profit for the 6 months to 31 December 2011 of $38m  Continued growth in balance sheet since December 2011:  Lending increased 6% from $12.1bn to $12.8bn  Customer deposits increased 5% from $11.7bn to $12.3bn  Continued customer growth  Kiwibank successfully issued a $150m subordinated bond into the domestic market. Despite being the first offer in New Zealand under the new Basel III capital rules, the bond was heavily over subscribed reflecting investor confidence in the Bank 3

Financial Performance – Profit & Loss  Continued growth in profitability  Aided by favourable exit of impaired loans in the 6 months Dollars in millions31 Dec Dec 2011% growth Net interest income Other income Total operating revenue % Total expenses(147)(151)(3%) Profit before tax % Income tax expense(22)(15) Profit after tax % 4

Financial Performance-Historical Summary 5 Dollars in millions31 Dec Dec Dec Dec Dec 2008 Financial performance Interest income Interest expense(260)(258)(259)(202)(283) Net interest income Other income Total operating revenue Operating expenses(147)(133)(118)(111)(110) Impairment allowances-(18)(31)(10)(6) Net profit before taxation Income tax expense(22)(15)(6)(9)(12) Net profit after taxation

Financial Performance-Balance sheet Strong loan growth continues in competitive market Matched by demand for Kiwibank’s retail deposit products 6 Dollars in millions 31 Dec Dec 2011% growth Assets Loans and advances12,84212,0686% Wholesale & other assets2,3902,318 Total assets15,232 14,3866% Financed by: Liabilities Customer deposits12,28611,7165% Securities issued & other liabilities2,137 1,971 Total Liabilities 14,423 13,6875% Shareholder's equity % Total liabilities and shareholder's equity 15,232 14,386

Financial Performance (key ratios) Ratios in percentage terms 31 Dec Dec 2011 Profitability measures Net interest inc./average interest bearing assets1.91%1.74% Net profit after tax/avg shareholder's funds15.4%11.6% Efficiency measures Operating expenses/total income64.5%65.1% Operating expenses/average total assets2.0%1.9% Capital ratios Total capital ratio (Pillar 1) 13.5% 12.0% 7

Financial Performance-Capital Adequacy  Total Capital ratio under Basel II is 13.5% compared to RBNZ’s minimum regulatory capital ratio of 8%  Total capital increased by $156m to $980m, a 19% increase from 31 December 2011  $150m subordinated bond issue in December 2012, heavily oversubscribed 8

Credit Quality (Impaired Assets)  The table shows total impaired assets as a % of gross loans and advances from Disclosure Statements dated 30 September Kiwibank remains favourably placed against other banks  Continued improvement in the quality of Kiwibank’s loan portfolio  Impaired assets of $56m at 31 December 2012 include all assets where interest charges have been suspended and a specific provision has been raised. Down from $100m at 31 December Source: 30 September 2012 Disclosure Statements. 31 December 2012 not yet available. 9 Bank 31 December September 2012 Kiwibank0.43%0.55% ASB0.71% BNZ0.77% Westpac1.43% ANZ1.55%

Kiwibank credit rating 10 In October 2012, Standard & Poor’s lowered Kiwibank’s credit rating one point to A+ (outlook stable). This mirrored the rating change to the Bank’s owner, New Zealand Post. The rating is among the highest of the trading banks operating throughout the world.

Kiwibank business banking 11 Business Banking: A growth sector  We serve business and all their related personal needs  Target market is New Zealand SME’s. They represent over 90% of Kiwi business (Source: NZ Statistics, Feb 2013) and are core to our economy.  Today we have 33,000 businesses and have grown by 8% over the last year  There are 115 Kiwibank business specialists nationwide  We have a full suite of banking services including specialised business products  Our current and future focus is to enable our customers to spend more time on their business by making their banking easy.

Kiwi Group Holdings 12 Kiwibank is owned by Kiwi Group Holdings, which in turn is fully owned by New Zealand Post. Kiwibank’s sister companies in Kiwi Group Holdings are New Zealand Home Loans (NZHL), Kiwi Insurance, and Gareth Morgan Investments (GMI). As at 31 December 2012:  NZHL had signed up $1 billion in home lending for the year  Group KiwiSaver (GMI and Kiwibank) had circa $1 billion in investments and over 60,000 members  GMI’s Funds Under Management grew to over $1.7 billion  Kiwi Insurance posted a profit of $1.9 million in 2012

Awards  2012 Reader’s Digest New Zealand – New Zealand’s Most Trusted Bank Brand – 6 years in a row  Roy Morgan Research 2012 Customer Satisfaction Awards – Major Bank of the Year  2012 CANSTAR Awards  First Home Buyer  Best Value New Zealand Term Deposits  2012 Sunday-Star Times Canstar Cannex Bank of the Year Awards  Most Price Competitive Bank  Sunday-Star Times Bank of the Year 2012  2012 NZ Innovators Award – Marketing and Communications  2012 TVNZ NZ Marketing Industry Award 13