SBS Bank marks first birthday

MEDIA RELEASE

7 October 2009

The team at SBS Bank are in high spirits this week as they celebrate a year of success on the first anniversary of becoming a registered bank.

Today (NB: 7 October) officially marks one year since SBS became a registered bank on 7 October 2008.

SBS Bank chief executive Ross Smith said it had been a significant and successful first year as New Zealand’s only customer-owned bank.

“To be just one year young as a registered bank and marking the notable heritage of SBS Bank at 140 years old is certainly extraordinary.

“Of the greatest importance, however, is the fact that our structure of being a member-owned, mutual society remains untarnished,” Mr Smith said.

“Our Southland-born organisation has experienced a year of achievements like no other in its long, proud history and our traditional and prudent approach enabled us to record another standout performance, despite the international economic turmoil and economic recession.

“The positive response of our membership and wider market to our bank registration was immediate. From October last year through to the end of the financial year our depositors’ funds grew by $200 million – five times more than for the same period the previous year.

“The corresponding impact to key measures of commercial strength – capital and liquidity – was also significant and, soon after gaining bank registration, SBS Bank was among the country’s first banks to be approved under the Government’s Deposit Guarantee Scheme.

Mr Smith said SBS Bank’s ongoing operational prudence and commercial robustness was also recognised by Reserve Bank of New Zealand-approved international credit rating agency Fitch Ratings when it reconfirmed the bank’s BBB investment grade credit rating.

“SBS Bank’s commitment to consolidating its position as a small mutual, strengthening its balance sheet, protecting the business and looking after its members remains foremost in our day-to-day operation.

“As a young bank, we know SBS Bank has evolved into a much stronger organisation over the past year and we’re looking forward to the 140 years ahead.

“Being able to stick to the SBS Bank philosophies of sustainability through prudence, commitment to mutual benefit, community prosperity and providing an environment where SBS Bank people really do make a difference is particularly important to the future of SBS Bank going forward.

“At SBS Bank we’re dedicated to looking after our members and we thrive on getting active in our communities with our people and their events. Knowing that won’t change is fantastic,” Mr Smith said.

“The team at SBS Bank is looking forward to celebrating our first birthday as a registered bank and, if the results of the past year are anything to go by, there is plenty of reason to celebrate.”

ENDS

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