SBS Bank boosts half-year net surplus on new branding, marketing

Friday 25th November 2016

SBS Bank has reported an increased half-year net surplus of $14.6 million after stepping up its marketing activity after refreshing its brand a year ago and increasing its presence through mobile mortgage managers.

The unaudited net surplus for the six months ending Sept. 30 compares to $9.8 million achieved in the same period last year, according to the bank’s disclosure document. Interest income was $96.2 million for the half-year, slightly 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.

Established in 1869, SBS Bank is thought to be the first building society in the world to have achieved bank registration while retaining its mutual structure, as the Southland Building Society. It has 16 branches across the North and South Islands, with mobile mortgage managers in Auckland and Christchurch and an online banking service.

Chief executive Shaun Dryle, who joined SBS in August, said in a highly competitive market SBS had achieved growth across its residential lending, consumer finance, managed funds, and insurance portfolios.

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.

BusinessDesk.co.nz

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