SBS operating profit more than a third higher

The SBS Group has increased its operating profit by 35.4% in the last six months.

The Southland banking group released its half-year results on Friday, which showed its operating profit has increased to $32.5 million, up $8.5 million on the same period last year.

The bank and its subsidiaries’(Finance Now, Fanz and SBS Insurance) lending advances — the total amount of money lent to clients — were up $93 million to $4.13 billion.

SBS’ total capital ratio was 16.3% compared with 14.9% this time last year and 15.7% six months ago.

The SBS FirstHome Combo package, which the bank launched in August, had generated strong demand despite the most recent LVR restrictions.

The group would be looking to reinvest $7 million a year in the package.

SBS was delighted with the success of the combo in the market, the group’s general manager member experience, Mark McLean, said.

"We’ve seen the growth through a combination of both Kainga Ora assisted loans which require only a 5% deposit as well as applications from new homebuyers who don’t meet the Kainga Ora criteria and need a higher deposit, " he said.

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