SBS performance 'significant in challenging economic climate'
SBS has recorded a surplus before tax of $56.6 million for the year ending 31 March 2024.
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Invercargill-based SBS Group, which includes subsidiaries SBS Insurance, SBS Wealth and Finance Now, has recorded a surplus before tax of $56.6 million for the year ending 31 March 2024.
It’s an increase of $5.1 million, or 10 per cent, on the previous year.
SBS Bank Group Chief Executive Mark McLean said the increase was due to strong lending growth and a one-off gain from the sale of an associate, partly offset by the impacts of margin compression, ongoing investment in the business and an increase in credit impairment expense.
During the year, 6650 new members joined SBS Bank as it welcomed strong numbers of both 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,” McLean said.
SBS Bank’s total home lending increased by 8 per cent to $4.3 billion – a multiple of 2.5 times the industry average growth rate.
“As Member deposits grew by 7 per cent, 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 key points of the financial result are:
Total assets of $6.5 billion were up $484 million or 8.1%
Members equity of $525 million increased $19 million or 3.8%
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 distributed through sponsorships and community partnerships
SBS Bank Chairman Joe O’Connell said the bank’s performance was significant in the challenging economic climate.
“Our strong asset portfolio is a testament to the dedication from teams right across the bank from lending through to credit risk management,” O’Connell 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. As a mutual-owned bank, it’s our priority to support all our members, and solid results like these mean we’re in a really strong position to do that.”
O’Connell said SBS Bank was proud to be 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.
SBS FINANCIAL OVERVIEW
(Year to 31 March 2024)
Surplus before tax:
$56.6 million ($51.8 million)
Lending:
$5.5 billion ($5 billion)
Member deposits:
$4.5 billion ($4.2 billion)
Total assets:
$6.5 billion ($6 billion)
Member equity:
Total capital ratio:
$525 million ($506 million)
16.3% (13.6%)
6650 new members welcomed
1950 New Zealanders bought their first home with SBS Bank
About SBS Bank Established in 1869, SBS Bank is a building society that has achieved bank registration while retaining its mutual structure. Mutual ownership means SBS Bank is 100% owned by its members (customers) and is uniquely positioned to provide benefits to its members. SBS Bank has 14 branches across the North and South Islands and a full online banking service. Total assets of the SBS Group are $6.5 billion.