Sharechat Logo

PSIS profit down, deposits and loans up

Wednesday 22nd June 2011

Text too small?

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."

 

NZPA



  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:

New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto