SBS Bank Reports Strong Full-Year Result
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SBS Bank’s result for the financial year to 31 March 2017 includes its strongest ever net surplus of $27.4 million, up 37% from $20.0 million the previous year.
Chairman John Ward said, “While SBS Bank has been a key contributor, with significant growth in both residential lending and retail deposits, this outstanding full-year result reflects strong performance across the entire SBS Group, with all three subsidiaries, Finance Now, FANZ and Southsure, outperforming their targets.”
SBS Bank’s competitive interest rates and ongoing improvements in its service offering have helped drive an increase in residential lending, reflected in total lending advances of $3.4 billion, up 19%, and a 9% increase in retail deposits to $3 billion.
“In what has been an extremely competitive market over the past 12 months, this result validates the progress we are making on realising our growth strategy by simplifying products, services and processes, providing tangible Member benefits, and leveraging synergies across the SBS Group,” said Mr. Ward.
Asset growth of $582 million was largely driven by the increase in residential lending. SBS Bank Members’ equity was $270 million, up 14.3%, and the bank’s capital adequacy sits well above the regulatory minimums.
Group CEO Shaun Drylie, who took up the role in August, said the result reflects SBS Bank’s strategy to make it easier for Members to do their banking.
“We are investing in new technology, staff development and branch upgrades, to ensure we continue to evolve to meet the changing needs of our Members. Our new mobile banking app and internet banking platform allows Members to bank wherever and whenever they want, and our new ‘virtual branch’ gives Members who do not live near a branch, access to banking services.”
“Our inherent focus on delivering value to our Members is our absolute priority as an organisation, given that they are not only our customers but also our owners,” said Mr. Drylie.
While New Zealand’s economy remains in strong shape, experts suggest there may be a slowdown in growth, citing housing market vulnerabilities and dairy sector downturn as the biggest domestic financial risks.
Mr Ward said, “Whilst 2017 produced a very acceptable result we are now very focused on the future. The 2018 financial year will involve challenges but opportunities too. SBS Bank is robustly capitalised which allows the Executive and Board to focus on a strategic framework that will continue to protect Members’ interests and enhance outcomes for them.”