MEDIA RELEASE
23 June 2016
“Solid Result” for SBS Bank Providing Platform for Future Growth
SBS Bank is reporting a solid result for the financial year ending 31 March 2016 with an operating surplus of $27.7
million, a 6% increase on the $26.1 million reported last year.
SBS Bank Chairman John Ward said, “In a somewhat difficult financial year we have achieved significant growth –
especially in wealth management, consumer finance, insurance and residential lending sectors which is meritorious given
the extremely competitive market.”
SBS Bank regulatory capital increased to $270.1 million for the year (up from $265.6 million last year) with retail
deposits $2.74 billion (up from $2.52 billion last year) and loan advances $2.87 billion (up from $2.39 billion last
year) and total assets at 3.41 billion (up from $2.86 billion last year).
Features of the past year included the launch of a refreshed contemporary brand across the network in November
increasing market presence. This was complemented by significant infrastructure expenditure including on upgraded
systems and software, and further investment in staff training and development.
“Our refreshed brand supporting our focus on making SBS easier to do business with has been very well received by our
members,” Mr Ward said. A national advertising campaign, along with mobile mortgage managers had also helped lift
awareness of SBS in the Auckland region, a market Mr Ward said SBS signalled last year it planned to become more active
in. He added that the board had been “very satisfied” with progress in both the Auckland region and the provinces.
In September, Fitch Ratings upgraded SBS’s Outlook from ‘stable’ to ‘positive’ with major contributors cited as the
transformed strategic approach, strong emerging competitive position and opportunity to grow the bank’s membership in a
targeted way.
Interim SBS Group CEO, Mark McLean said, “We have continued to deliver tangible benefits to members through competitive
pricing. The launch of our 3.99% one year fixed mortgage rate saw SBS lead the market, setting the lowest rate seen in
decades.” In addition to benefit through pricing, more than $1 million in rebates had also been given to members in the
past year.
Mr McLean added that the brand refresh had been part of creating “a unique position in the marketplace. The new look has
enabled SBS to become an energised, cohesive and contemporary bank.”
In the year ahead SBS would continue its focus on growth in line with its vision to become ‘New Zealand’s member bank’
through the key themes of Simplicity, Benefit and Synergy. This includes ongoing investment in IT, particularly the
digital channel, and further staff development.
ENDS