Chief executive Ross Smith said the profit was "another strong performance" by the country's largest building society and a testament to its commercial conservatism.
"It is a result that is particularly pleasing, given that it was achieved amid the turmoil in the global financial market that has put both bank and non-bank institutions of all sizes to the test."
An analysis of the accounts showed the operating performance was affected by a $9 million provision for bad debts, up from the $3.7 million in the pcp.
SBS lost $1.3 million from its financial instruments, compared with a gain of $924,000 last year.
Mr Smith said given the ever-increasing competition, expected economic downturn and escalating compliance costs, the aim of SBS a year ago was to hold its 2008 result at a level similar to last year's.
That had been achieved.
"Our conservatism led us to resist the opportunities to invest in bonds backed by United States subprime mortgages and also ensured that we chose not to follow suit when the competition loosened eligibility criteria to conduct subprime lending in a mad grab for mortgage market share."
SBS was conscious that in a period of economic downturn, loan arrears would increase and SBS did not expect to be immune.
However, Mr Smith believed the conservative attitude to lending of SBS would shelter it from any major fallout.
SBS's total assets increased to $2.43 billion in the period and total lending increased nearly 10% to $2.33 billion.
The building society's subsidiaries - Funds Administration NZ, Southsure Assurance and Finance Now Ltd - contributed a combined $3.3 million to the operating surplus.
A highlight of the year was SBS being awarded a BBB investment grade credit rating by Fitch Ratings, a Reserve Bank approved international rating agency, Mr Smith said.
SBS was still considering bank registration within six months.
During the year, several new products were launched, including the Gold Internet Banking service, which allowed members to manage their bill payments independently.
The building society also continued to strengthen its position, Welcome Home Loans securing 62% of the South Island market and 54% in the North Island.
