SBS Makes $45m While Helping First Buyers
Business news is presented by
SBS Bank has struck a technology partnership that will make it the first New Zealand bank to use a core banking platform powering millions of customers worldwide.
The Invercargill-based bank announced a long-term deal with Engine by Starling, the cloud-native platform developed by UK digital bank Starling Bank. The technology is used by Salt Bank in Romania and AMP in Australia.
SBS reported an underlying operating surplus of $45 million for the year ending March 31, while welcoming 4,787 new members and helping more than 1,330 New Zealanders into their first homes.
"This has been a year of steady progress for SBS - supporting our members through a challenging environment while continuing to build a strong bank for the future," SBS Group Chief Executive Mark McLean said.
"Many New Zealanders are still feeling the impact of cost-of-living pressures, and as a member-owned bank our focus remains on providing stability, support and certainty when it matters most."
The Engine partnership will strengthen fraud and scam protection while delivering an enhanced digital banking experience. SBS Bank Chairperson Joe O'Connell said the programme will enhance digital capability and deliver a world-class seamless banking experience.
"Members will notice this investment through faster, easier, and more secure everyday banking. Through our partnership with Engine, we will constantly be at the forefront of global banking technology, so we're always ready for what's next," O'Connell said.
First home buyers saved $94 a fortnight by banking with SBS during the year. The bank returned more than $1 million to communities across New Zealand through sponsorships and grassroots initiatives.
SBS strengthened its financial position with an upgrade to BBB+ issuer credit rating and a successful Australian medium-term note issuance that expanded its investor base.
"These are significant milestones for SBS and reinforce the strength of our financial position and our ability to support members into the future," McLean said.
"SBS remains one of the best-capitalised banks in New Zealand at 18%, providing a strong platform for future lending growth."
The 157-year-old bank operates from its redeveloped head office in Invercargill and has 10 branches across both islands. Total assets of the SBS Group are $6.7 billion.
"For 157 years, we have stayed focused on helping New Zealanders find a place to call home and that purpose continues to guide every decision we make as we invest for the future and support our members through whatever lies ahead," O'Connell said.