SBS Bank Reports Strong Growth, Aiding More Kiwis in Homeownership
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- SBS Bank’s pre-tax surplus rose to $56.6 million, a 10% increase from last year.
- The bank welcomed 6650 new members, focusing on first home buyers.
- Home lending grew by 8% to $4.3 billion, significantly above the industry average.
SBS Bank has announced another successful year of growth, aiding a record number of Kiwis in purchasing homes. The SBS Group, including SBS Insurance, SBS Wealth, and Finance Now, reported a pre-tax surplus of $56.6 million for the year ending 31 March 2024, reflecting a $5.1 million or 10% increase compared to the previous year.
SBS Bank Group Chief Executive Mark McLean attributed the increase to strong lending growth and a one-time gain from the sale of an associate, though he acknowledged that margin compression, ongoing business investments, and higher credit impairment expenses partially offset these gains.
Throughout the year, 6650 new members joined SBS Bank, with a significant number being first home buyers and investment members. “We are delighted to be the trusted financial partner in the lives of 86,000 members across New Zealand as we grow and succeed as a wholly New Zealand-owned mutual organisation, investing back into New Zealand,” said Mr McLean.
One key highlight was the increase in home lending and deposits. SBS Bank’s total home lending grew by 8% to $4.3 billion, which is 2.5 times the industry average growth rate.
“Helping 1950 Kiwis step into home ownership through competitive pricing and superior products for first home buyers is an excellent achievement,” said Mr McLean. “This success is made possible by the support of our loyal investment members, who we were pleased to reward with market-leading term investment rates.”
Mr McLean also noted, “As member deposits grew by 7%, more than 1.2 times the industry growth average, we’ve been pleased to bring home buyers and investors together through our purpose of helping Kiwis find a place to call home.”
Other notable points from the results include:
- Total assets increased by $484 million or 8.1%, reaching $6.5 billion.
- Member equity rose by $19 million or 3.8% to $525 million.
- Member deposits grew by $285 million or 6.7% to $4.5 billion.
- The total capital ratio increased from 13.6% to 16.3%.
- Over $900,000 was distributed through sponsorships and community partnerships.
SBS Bank Chairman Joe O’Connell emphasised the significance of the bank’s performance amid challenging economic conditions. “Our strong asset portfolio is a testament to the dedication from teams right across the bank, from lending through to credit risk management,” he said. “We know some New Zealanders are facing pressures in times of rising costs. Strong asset health means we are in a solid position to withstand external pressures and support members facing uncertainty or needing help managing in a higher interest rate environment.”
Mr O’Connell added that as a mutual-owned bank, supporting all members is a priority, and the solid results enable the bank to provide this support effectively. He also expressed pride in SBS Bank being named Mutual of the Year 2023 at the Cooperative Business New Zealand Annual Awards and Canstar Bank of the Year for First Home Buyers 2023.
“These awards recognise the efforts of our teams right across the bank who work so hard to provide value and great outcomes for our members,” he said.