SBS Bank records healthy first quarter result

Media Release

3 September 2009

SBS Bank records healthy first quarter result

SBS Bank’s prudent business approach continues to pay dividends with New Zealand newest retail bank recording a healthy first quarter result.

SBS Bank general manager finance Tim Loan said it was extremely pleasing to defy the current economic odds that have been causing issues for many banking and financial institutions.

“Prudent business management is fundamental to SBS Bank to ensure long-term sustainability and it is reassuring to be able to record a small, yet still significant, lift in profits for the June quarter.

“Foremost, SBS Bank has increased its level of capital reserves and liquidity, providing greater strength to our position as a bank that is still fully operating as a mutual, member-owned building society.

“SBS Bank’s operating surplus for the first quarter to 30 June was $5.4 million compared against $5.3 million for the same period last year, while profit after tax was up 53 percent - keeping in mind that this was largely due to the impact of International Financial Reporting Standards (IFRS).”

Mr Loan said total capital increased 8.5 percent over the quarter to $223 million with retail deposits growing at an annualised rate of 10.5 percent to $2.18 billion.

“SBS Bank remains committed to consolidating our position as a small mutual, strengthening our balance sheet, protecting the business and looking after our members.”

ENDS

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