SBS posts 'solid' financial result despite challenges
“This year has once again shown just how strong and resilient the SBS Group is."
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The SBS Group has delivered a “solid” financial result for the year ending March 31, recording a $43.1m pre-tax operating surplus.
It stated that positive financial result has come during one of the toughest economic climates of the past two decades.
“This year has once again shown just how strong and resilient the SBS Group is,” SBS Group Chief Executive Mark McLean said.
“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.”
The SBS Group includes SBS Bank, SBS Insurance, SBS Wealth and Finance Now and its pre-tax operating surplus of $43.1m is 2.1% up on the prior year.
Both lending and deposit growth indicated strong underlying performance.
“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 remains strong at 16.4%, up 0.1% on the prior year and above regulatory requirements (9%).
In a market where affordability remains a challenge, the SBS Group supported 1479 first home buyers this year.
Total home lending rose 3.7% to $4.5 billion. For the third year-in-a-row, Canstar also named SBS Bank as the ‘Bank of the Year for First Home Buyers’.
As the OCR reduced, SBS Bank maintained market-leading term investment rates, resulting in a 3.5% increase in Member funding balances to $4.6 billion.
SBS Bank has had a focus on digital transformation, with investment to “future-proof systems, enhance service, and support innovation with a new home loan tool to simplify the home loan application process”.
SBS Bank confirmed it has decided to close its Cromwell, Timaru, and Hamilton branches throughout June, while its Windsor branch in Invercargill closed on Friday.
