Sharechat Logo

Canterbury Building profit drops 45% on dividend payment

Tuesday 1st July 2008

Text too small?
Canterbury Building Society, the South Island lender that boosted its mortgage business by two thirds after acquiring a rival, said full-year profit fell 45% on costs to redeem preference shares.

Net income fell to NZ$880,000 in the 12 months ended March 31, from NZ$1.6 million a year earlier, the company said in a statement. Sales rose 23% to NZ$36 million.

The results included NZ$1.1 million for a one-off dividend payment on its preference shares and increased tax. Operating earnings rose 24% to about NZ$2 million.

CBS Canterbury acquired Loan & Building Society on Feb. 1, helping lift total assets to NZ$561 million from NZ$349 million.

Chairman Gary Leech said excluding the merger, the global credit crunch was the biggest influence on business, hampering the company's ability to accelerate profit growth.

"We see no change from very competitive conditions and continued pressure on margins in the short to medium term," he said.

Shares of Canterbury Building fell 3.2% to NZ$4.55.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Canterbury Building Society gives hint on bank merger timeline
CBS Canterbury looks to bonus share issue before proposed bank merger