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TSB Bank posts 21% gain in full-year pretax earnings on loans, deposits

Friday 28th May 2010

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TSB Bank, which touts its 100% New Zealand ownership as a point of difference over the four Australian-owned rivals, said annual earnings rose 21% as it took in more deposits and increased lending.

Pretax earnings rose to $74.3 million in the 12 months ended March 31, from $61.2 million a year earlier, the lender said in a statement today. Depositors’ funds increased by $549 million to $4 billion, while its loan portfolio jumped by a record $279 million to $2.4 billion.

The lender, formerly called Taranaki Savings Bank, has been shielded from the global financial crisis because it sources funding only through its domestic deposit base. TSB evokes a feel-good factor, claiming 50% of new business comes from recommendations of existing customers, whose upbeat view of the lender gives it the top rating in the Roy Morgan Consumer Banking Customer Satisfaction Report. State-owned KiwiBank also plays on its local ownership in its marketing efforts.

“An increased national demand for our services saw most of our growth projections, including market share, depositors’ funds and home loan growth, exceeded over the past 12 months,” said chief executive Kevin Murphy.

TSB said its Capital Adequacy Ratio at 15.9% is the highest of any retail bank in New Zealand.

Growth in deposits was helped by uncertainty in global financial markets and the collapse of the finance company sector in New Zealand, which stoked demand for TSB’s services, it said.

 

 

 

Businesswire.co.nz



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