SBS Bank has continued on its profit-making way, yesterday reporting an improved profit for the six months ended September 30.
SBS reported an after-tax profit of $7 million for the period, up from $6.3 million in the previous corresponding period.
The operating profit was $9 million, down from the $9.3 million reported last year.
Managing director Ross Smith said significantly lower credit losses, coupled with improved valuations on financial instruments, were the key drivers of the after-tax profit increase.
The result was "extremely satisfying" considering the demanding financial environment experienced by banking and financial institutions over the past two years.
"It is pleasing to be able to see our commitment to prudent business management at SBS Bank is continuing to enable us to further strengthen our position as New Zealand's only customer-owned community bank."
Customer deposits grew by $14 million in the period, to a totalof $2.24 billion.
The bank's tier one capital increased $14.3 million to $183 million with the total capital ratio sitting at 13.7% - one of the highest ratios for registered banks in New Zealand.
That was "particularly pleasing", Mr Smith said.
The objective in the current financial year was to further consolidate the bank's position as a mutual by strengthening the balance sheet, safeguarding the business and looking after its customers and the communities in which it operated.
"We have ensured the financial wellbeing of the society remains paramount while growing our national footprint with the successful merger of the Hastings Building Society on October 1.
"The addition of two HBS branches advances our objective of creating a national community bank," he said.
