Superbank posts loss but growing steadily

At September 30, the homeloans book totalled $46.3 million.

The bank, a joint venture between St George and Foodstuffs, which operates the Pak’ N Save, New World, Four Square and Write Price supermarkets, grew its total assets from $76.3 million at the end of September a year ago to $372.6 million at the end of September this year.

"We have made massive strides in the last 12 months," says chief executive James Munro. "Our research shows Superbank is now firmly established amongst the top choices for consumers in our target demographic who are looking to change banks. Brand awareness continues to grow and is now over 70%."

Munro won’t be drawn on when Superbank will become profitable but says "We’re on target and pretty comfortable with where we’re sitting at the moment."

The bank’s progress on the homeloans front is somewhat faster than the government’s Kiwibank experienced in its early stages. Launched in February 2002, Kiwibank’s homeloans book passed $100 million in September that year.

Munro says Superbank’s average loan was $214,000 at the end of September and has since climbed to $218,000.

On the deposits side, growth was 697% to $328.5 million with the average loan balance rising from $6.932 at the end of September last year to just below $23,000 at the end of September this year. The bank markets its SuperSaver product as a term deposit without the term. Munro says the average deposit continues to grow.

"These are fantastic results for a new business such as ours and reinforce the fact that people are talking about Superbank – positively," Munro says.

"We’re attracting mid to upper socio-economic groups both on the lending side and the deposit side – it’s what we wanted to attract," he says.

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