Just looking at the latest quarterly data from the RBNZ Dashboard and reflecting on some of the upbeat news around Kiwibank’s rebounding profitability, I noticed this:

Capital down (and the worst of the largest six banks), while the average bank increased capital.

Profits, same story.

Credit losses expected to rise relatively fast.

Net income margin slightly below average.

Densities, which are risk-weighted assets over total assets, a measure of risk, trending up.

In all, it is not clear if the Kiwibank bailout of a year ago delivers value. Despite slightly increased risk appetite, key indicators have still some way to go.