SBS Bank’s Full-year Result Shows Strong Performance In Its 150th Year

Jun 07, 2019
1132 Views

What's On Invers Business News Presented by and

Continued growth in the core residential lending and a strong performance in its consumer finance subsidiary has boosted SBS Bank Group’s financial results, with a 15.5% increase in operating surplus for the year ending 31 March 2019.

SBS Bank chairman John Ward said with SBS Bank marking its 150th anniversary, it was incredibly pleasing to see the organisation performing so well and in such good financial health.

The Invercargill-based group, which includes subsidiaries Finance Now, FANZ and Southsure, has reported an operating surplus of $40.8 million, up from $35.3 million in the previous year. Members’ Equity is up $29.4 million, or 10% on last year, to $324 million.
SBS Bank’s total capital ratio has increased across the year to 14.18% due to moderation of growth relative to profit and the issuing of Capital Bonds and remains well above the regulatory minimum (8%), Mr Ward said.

“One of the highlights of the result is the contribution of all of our entities as well as balanced growth, with lending up $181 million (5%) on last year, alongside strong retail funding growth, up $191 million (6%).

“While SBS Bank has been a key contributor with improved profitability due to asset growth and improved productivity, this also reflects another significant contribution of our Finance Now business,” he said.

“The integration of The Warehouse Group Financial Services, bought in the 2018 financial year, contributed to a strong performance from Finance Now and enabled the group to provide additional services and benefits.”

Group chief executive Shaun Drylie said other key developments over the past year included SBS acquiring the remaining 15% of FANZ to take full ownership; SBS via FANZ acquiring the remaining 50% of Staples Rodway Asset Management (SRAM); the implementation of technology that makes it possible for Members to apply for and open term investments online; the launch of the Capital Bond product into the Australian market; and a bank statement elimination project that removed the need for more than 2 million pieces of paper.

“Our Members’ needs have been our focus for 150 years and they will continue to be at the forefront of our organisation into the future,” Mr Drylie said.
“Our profits remain in New Zealand and provide us with the opportunity to continue doing what we do, so these results will reinforce our Members’ confidence in their bank.”

H&J Smith The Latest Victim Of Covid-19: 175 Staff Affected
Business, News
5139 views
Business, News
5139 views

H&J Smith The Latest Victim Of Covid-19: 175 Staff Affected

News Desk - May 25, 2020

After 120 years in business, H&J Smith is planning to close or downsize all of its stores other than its…

Stuff’d Chief Executive Sinead Boucher Buys Company For $1
Business, News
723 views
Business, News
723 views

Stuff’d Chief Executive Sinead Boucher Buys Company For $1

News Desk - May 25, 2020

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1. Sinead Boucher, chief executive…

‘It’s un-Australian and Heartbreaking’: Beer Dumped Due to Pub Closures
Business, News
1096 views
Business, News
1096 views

‘It’s un-Australian and Heartbreaking’: Beer Dumped Due to Pub Closures

News Desk - May 16, 2020

Millions of litres of beer are being tipped down the drain in Australia as huge quantities of the liquid gold…

Coworking Spaces to Reopen at Level 2
Business, Covid-19
1131 views
Business, Covid-19
1131 views

Coworking Spaces to Reopen at Level 2

News Desk - May 15, 2020

New Zealand coworking industry association, Coworking Aotearoa, is welcoming the return of coworking in Level 2, saying it will help…

Air NZ Turns Dreamliner Into Inter-Island Cargo Carrier
Business, News
1306 views
Business, News
1306 views

Air NZ Turns Dreamliner Into Inter-Island Cargo Carrier

News Desk - May 14, 2020

Air New Zealand has turned its Dreamliner into a cargo carrier. The airline said it would fly the Boeing 787-9…