Kiwibank is reporting a 9% drop in annual profit. 

It comes amid talk of a potential merger between Kiwibank and TSB Bank, if the current TSB-Heartland merger falls through. 

The Crown-owned bank says it's dealing with a challenging economic environment. 

Its net interest income —the gap between what it's receiving in interest and paying out in interest— has risen 1.7%. 

Massey University's Professor Claire Matthews told Ryan Bridge that suggests they're having to cut what they're charging on their loans in order to get the lending they're getting. 

She says that method is fine in the short term, but it's not maintainable in the long term. 

LISTEN ABOVE  

Kiwibank is reporting a 9% drop in annual profit.&nbsp;
It comes amid talk of a potential merger between Kiwibank and TSB Bank, if the current TSB-Heartland merger falls through.&nbsp;
The Crown-owned bank says it's dealing with a challenging economic environment.&nbsp;
Its net interest income —the gap between what it's receiving in interest and paying out in interest— has risen 1.7%.&nbsp;
Massey University's Professor Claire Matthews told Ryan Bridge that suggests they're having to cut what they're charging on their loans in order to get the lending they're getting.&nbsp;
She says that method is fine in the short term, but it's not maintainable in the long term.&nbsp;
LISTEN ABOVE &nbsp;

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

Early Edition with Ryan Bridge

Claire Matthews: Massey University Head of Accountancy, Economics and Finance on Kiwibank's financial results

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/388ac631-a23a-4d6c-9b79-b4ac01895ed7/transcript