MEDIA RELEASE
21 December 2010
SBS Bank announces solid six-month result
SBS Bank has announced a sound profit of $7.0 million after tax for the six months ended 30 September 2010. This
compares with a profit of $6.3 million for the same period last year. Significantly lower credit losses coupled with
improved valuations on financial instruments were the key drivers of the profit increase.
SBS Bank Managing Director Ross Smith described the result as extremely satisfying considering the demanding financial
environment experienced by banking and financial institutions over the past two years.
“It is pleasing to be able to see our commitment to prudent business management at SBS Bank is continuing to enable us
to further strengthen our position as New Zealand’s only customer-owned community bank.
“SBS Bank’s operating surplus for the first six months was $9.0 million, which is in line with the $9.3 million reported
for the same period last year. Customer deposits have grown by $14 million to a total of $2.24 billion.
“Furthermore, SBS Bank’s tier one capital has increased $14.3 million to $183 million with our total capital ratio
sitting at 13.7 percent – one of the highest ratios for registered banks in New Zealand, which is particularly
pleasing.”
“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.
“We have ensured the financial wellbeing of the society remains paramount while growing our national footprint with the
successful merger of the Hastings Building Society on 1 October. The addition of the two HBS Bank branches advances our
objective of creating a national community bank.
ENDS