SBS Group Reports Strong Yearly Growth
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- SBS Group achieved a $43.1 million surplus despite economic uncertainty across New Zealand
- Support for first home buyers increased, helping nearly 1,500 Kiwis into their own homes
- Digital upgrades and branch changes reflect shift in Member expectations and behaviours
SBS Group has posted a solid financial performance for the year ending 31 March 2025, reinforcing its focus on helping Kiwis get into homes despite a tough economic backdrop.
In a year marked by rising unemployment, inflation and weak GDP growth, SBS delivered a pre-tax operating surplus of $43.1 million, up 2.1% from the previous year. The Group includes SBS Bank, SBS Insurance, SBS Wealth and Finance Now, and showed strong lending and deposit growth throughout the year.
“This year has once again shown just how strong and resilient the SBS Group is,” said Chief Executive Mark McLean. “Even with the pressures of a challenging economic environment and wider market challenges, we stayed true to our purpose – helping Kiwis find a place to call home.”
Mr McLean added that sustainable, responsible growth remained a key priority. “Strengthening our balance sheet has been a key priority, supported by continued growth in funding through both retail and wholesale channels. A highlight was our third successful NZDX-listed medium-term note issuance – an important milestone for a bank of our size.”
SBS Bank’s capital ratio rose slightly to 16.4%, well above the required 9%, showing its ability to keep supporting Members in future.
One of the major focus areas for the year was first home buyers. SBS Group supported 1,479 first home buyers and continued to offer its FirstHome Combo, which makes buyers $156 better off each fortnight. This is the third year in a row SBS Bank has been named ‘Bank of the Year for First Home Buyers’ by Canstar.
Overall home lending rose by 3.7% to $4.5 billion, and Member funding balances increased 3.5% to $4.6 billion. The bank also welcomed over 5,800 new Members, underlining the strength of its mutual model.
Looking ahead, SBS Bank is making strides in its digital transformation. Investment has gone into future-proofing systems and creating a simpler home loan tool. Branch changes are also part of this shift, with the Cromwell, Timaru and Hamilton branches closing in June, and the Windsor branch now merged with Invercargill’s main branch. This follows a noticeable trend towards digital banking and the use of intermediaries.
Cybersecurity continues to be a major priority, backed by investment in secure systems and support from a seven-day-a-week New Zealand-based contact centre.
SBS Bank Chairperson Joe O’Connell said, “I’m proud of our SBS Bank team across the country who have stayed focused on delivering great outcomes for Members despite a tough operating environment.”