SBS Bank boosts half-year net surplus

by NZ Adviser28 Nov 2016

SBS Bank has reported an increased half-year net surplus of $14.6 million – up from $9.8 million achieved in the same period last year, according to the bank’s disclosure document.

SBS Group CEO Shaun Drylie, who joined SBS in August this year, said the growth has been driven across the entire SBS Group portfolio including residential lending, Finance Now consumer finance, FANZ managed funds and Southsure insurance products.

Drylie noted that the launch of the refreshed bank brand in November last year continued to receive a  positive public response and had furthered awareness of SBS Bank as a modern relevant banking option.

“Stepping up marketing activity and increasing our presence through mobile mortgage managers is definitely starting to contribute to our strong growth.” 

Interest income was $96.2 million for the half-year, down on the $98.7 million received the previous year while provision for credit impairment dropped to $4.8 million, from $6.1 million the year before, according to Business Desk.

SBS has net assets of $257 million. Most advances are to residential customers - $2.3 billion as at the end of the first half, up from $2.09 billion in the same period last year. Advances to agricultural customers were $248 million, down from $273 million in the prior year.

Its total capital adequacy ratio, a measure of the group’s capital as a percentage of its risk-weighted credit exposures, is 13.6 percent, down from 14.2 percent in the first half of 2015 and well above the 8 percent minimum ratio requirement.

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