20 years of record growth: TSB Bank

MEDIA RELEASE
EMBARGOED UNTIL 6PM 31 MAY 2007

20 years of record growth: TSB Bank

TSB Bank today announced its 20th consecutive year of record profit growth – which is itself a record in the New Zealand banking industry.

“I know of no other New Zealand bank that can claim anything like such a lengthy history of year-on-year increasing profit growth,” says Kevin Rimmington, TSB Bank Managing Director and CEO.

“This growth reflects increasing demand for our services right across the country via our direct banking, face-to face offices in Auckland, Hamilton, Tauranga, Taranaki, Wellington, and Christchurch, plus Internet banking, text banking, and phone banking.

“We believe this growing demand owes a great deal to the superior level of service we have always offered our customers. In fact, TSB Bank has topped every survey of customer satisfaction conducted in the last six years [University of Auckland Residential Bank Customer Survey: 1999 – 2005 / Roy Morgan Customer Satisfaction Survey: 2006. 2007].”

TSB Bank’s tax-paid profit for the year ended 31 March 2007 is $34.8 million – an 11.3 percent increase on the 2006-year result. Meanwhile increased support for the bank saw funds on deposit increase by nearly 10 percent to $2.59 billion.

This is matched by record growth in home lending – the bank’s portfolio total now stands at $1.93 billion.

These market strengths were backed by solid capital adequacy and financial performance ratings.

The bank’s Capital Adequacy Ratio, an important measure of financial strength, stands at 16.08 percent – well above the international standard of 8 percent. And the bank’s Return on Average Assets of 1.28 percent remains considerably greater than the minimum international banking benchmark of 1 percent.

ENDS

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