TSB's June quarter profit jumps 25.6%

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TSB Bank's June quarter profit jumped 25.6% despite charges for bad loans rising and its mortgage book grew at slightly more than its market share.

Tuesday, September 15th 2009, 5:45AM

by Jenny Ruth

TSB's latest general disclosure document shows net profit for the three months ended June 30 rose to $14.9 million from $11.8 million in the same three months a year earlier.

That's despite charges against profit for bad loans rising to $0.42 million from $0.25 million. Net interest income rose 18.6% to $28.2 million.

TSB's mortgage book grew by $44 million to $1.95 billion in the three months. Using Reserve Bank figures as a proxy for the market, its share of new lending on mortgages by registered banks rose to 1.23% from 1.21% three months earlier.

TSB's loans with loan-to-value ratios (LVRs) below 80% accounted for 88% of its mortgage book, down from 89.3% three months earlier. Of those with LVRs above 80%, about 40%, or $93.8 million of its mortgages are government-backed Welcome Home Loans, up from $62.9 million at March 31 and $50.8 million at December 31.

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