SBS Bank announces solid six-month result

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

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