Strong Half Year Profit For SBS Helps To Fund Support Of First Home Buyers

The SBS Group has today announced its half year results for the 21-22 financial year.

Despite the impact of Covid-19 lockdowns and resulting business disruptions, the organisation is pleased with its progress during the first six months of the year, and the positive impact it has been able to make in supporting more New Zealanders on their first homebuyer journey.

The SBS FirstHome Combo package which launched in August has generated extremely strong demand in all geographical regions despite the most recent LVR restrictions. The organisation will be looking to reinvest $7 million a year into its FirstHome Combo product to support first homebuyers.

GM Member Experience Mark McLean said, “We’ve been delighted with the success of our FirstHome Combo in the market and we can see that this complete SBS Group offering is really resonating with first homebuyers. We’ve been helping Kiwis get into their first home for over 152 years so we really understand the challenges. We’ve seen the growth through a combination of both Kāinga Ora assisted loans which require only a 5% deposit as well as applications from new homebuyers who don’t meet the Kāinga Ora criteria and need a higher deposit. ”

SBS Bank also has a strong Reverse Equity Mortgage product in market which enables older New Zealanders to release the equity in their home to generate additional funds that they may need for their retirement.

Mr McLean said, “Our SBS Unwind Reverse Equity Mortgage has been a real game-changer for many of our older members who aren’t ready to leave the property they’ve worked so hard for but don’t have the cash they need to enjoy their retirement. Our Reverse Equity Mortgage allows them to stay in the property and borrow against its value, so the property is really working for them.”

The SBS Group which includes subsidiaries trading as Finance Now, FANZ and SBS Insurance reported a half year operating profit of $32.5 million, up 35.4% or $8.5 million on the same period last year, lending advances are up $93 million over the six months to $4.13 billion and the total capital ratio is at 16.3% compared with 14.9% this time last year and 15.7% at the end of the 20-21 financial year.

Chief Financial Officer Tim Loan said, “These half year results show strong momentum as an organisation and it’s particularly pleasing to see that all of the SBS Group businesses have contributed well to these overall results.”

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