SBS Bank has repoted a solid financial result for the year ended in March 2018, with an operating surplus of $35 million.
According to SBS Group CEO Shaun Drylie, the bank remains in a good financial health and continues to perform well with its lending figures up 11% to $388 million and retail funding up 11% to $337 million.
“While SBS Bank has been a key contributor, with continued growth in both residential lending and retail deposits, this also reflects strong performance across the entire SBS Group, including subsidiaries Finance Now, FANZ and Southsure,” Drylie noted.
SBS Bank’s total capital ratio increased across the year to 12.8% and remains well above the regulatory minimum (8%), despite the costs incurred for the acquisition of Warehouse Group Financial Services.
“This acquisition was a strategic decision to facilitate growth and leverage various technology platforms that exist within Warehouse Group Financial Services for the benefit of the entire SBS Group,” says SBS Bank chairman John Ward. “The fact that we’ve been able to complete this transaction, in the face of the unique challenges a mutual bank has in respect of the capital instruments available to it, while at the same time improving our capital adequacy over the year, is a testament to the prudent approach our executive team and staff take to the bank’s evolution.”
SBS Bank Members’ equity was up $28 million on the previous year to $295 million.
SBS members “can have confidence in their bank’s future, following another strong financial result, as well initiatives that demonstrate our ongoing commitment to meeting changing consumer needs,” says Ward.
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