SBS first half profit rises

Tuesday 21st December 2010

SBS Bank posted an improved after-tax profit of $7 million for the six months ended September 30, in part due to lower credit losses, the company said.

SBS, formerly the Southland Building Society, posted an interim net profit of $6.3 million a year earlier.

Operating profit of $9 million was slightly lower than $9.3 million a year earlier, but customer deposits increased and the company benefited from improved valuations on financial instruments.

Customer deposits were up $14 million at $2.24 billion. Tier one capital - a key measure of financial strength - rose $14.3 million to $183 million, and the bank's total capital ratio of 13.7% was one of the highest ratios for registered banks in New Zealand, SBS Bank managing director Ross Smith said.

The result was "extremely satisfying" given the effects of the global financial crisis on banking and financial institutions in recent years, he said.

"Our objective in this financial year is to further consolidate our position as a mutual, by strengthening our balance sheet, safeguarding the business and looking after our customers and our communities," Smith said.

SBS merged with Hastings Building Society after the reporting period, on October 1, with the intention of expanding its business across the country.

NZPA

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