Wednesday 22nd June 2011
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PSIS reported a 44% cut in full year profit before tax, but lifted retail deposit volumes and loans by 4% in the year to March 31.
The cooperative highlights pre-tax profit which was $9.3 million in the latest year, down from $16.6 million in the previous 12 months when results were boosted by favourable interest margins and low loan losses.
A "more normalised" result had been predicted for the 2010/11 year. In 2008/09 pre-tax profit was $10.7 million.
In the latest 12 months net interest income fell 13% from the year before to $43 million, while both deposits and loans were $1.16 billion. After tax profit was $7.1 million down from $13.1m the year before.
PSIS chairman Sir David Gascoigne said greater liquidity and stronger capital ratios had been achieved, against the backdrop of an economic environment that continued to be challenging.
PSIS chief executive Girol Karacaoglu said conservative lending policies and risk management framework meant that during this past financial year loan impairments and losses were held at targeted levels.
They would have been down 20% on the previous period had it not been for the Christchurch earthquakes.
"While it's difficult to assess the final impact of these tragic events, we've made provisions for increased loan losses," Karacaoglu said.
PSIS has chosen to maintain high levels of liquidity, assisted by a $100 million medium term note issue to raise money on the wholesale market.
"Overall, this additional liquidity means that, when the economic recovery starts in earnest, we'll be better positioned to help our members."
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