The bank says it is pleased to be performing well after 150 years in operation
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SBS Bank has announced its end-of-year results, and has revealed a strong performance in residential lending and consumer finance.
The bank reported a 15.5% increase in operating surplus for the year ending 31 March 2019, and SBS Bank chairman John Ward said it was “incredibly pleasing” to see the bank in good financial health as it marks its 150th anniversary.
SBS Bank and its subsidiaries Finance Now, FANZ and Southsure have reported an operating surplus of $40.8 million, up from $35.3 million the previous year. Its total capital ratio has increased to 14.8%, remaining well above the regulatory minimum of 8%.
“One of the highlights of the result is the contribution of all of our entities as well as balanced growth, with lending up $181 million (5%) on last year, alongside strong retail funding growth, up $191 million (6%),” Ward said.
“While SBS Bank has been a key contributor with improved profitability due to asset growth and improved productivity, this also reflects another significant contribution of our Finance Now business.”
Group chief executive Shaun Drylie noted the other key developments for SBS Bank over the past year; these included acquiring the remaining 15% of FANZ to take full ownership, acquiring the remaining 50% of Staples Rodway Asset Management (SRAM), and launching the Capital Bond product into the Australian market.
“Our Members’ needs have been our focus for 150 years and they will continue to be at the forefront of our organisation into the future,” Drylie said.
“Our profits remain in New Zealand and provide us with the opportunity to continue doing what we do, so these results will reinforce our Members’ confidence in their bank.”
