TSB holds its own in mortgage war

TSB Bank increased its share of the mortgage market a smidgeon in the December quarter, although its rate of profit growth slowed markedly.

Wednesday, February 22nd 2006, 9:26PM

by Jenny Ruth

The bank's December quarter disclosure document shows its mortgage book grew $68.8 million to $1.49 billion over the quarter. Using Reserve Bank figures as a proxy for the market, that puts its share at 1.29% up from 1.28% at the end of September.

That was still slightly down on the 1.31% market share at the end of 2004 when its mortgage book stood at $1.3 billion.

Net profit for the quarter grew 6.4% to $7.5 million, putting its net profit for the nine months ended December up 12.5% at $23.99 million compared with the same nine months a year earlier.

The latest quarter's profit growth was down from 18% recorded in the September quarter and the 12.9% increase in the June quarter.

TSB managing director Kevin Rimmington says slowdown in profit growth partly reflects the fact that December is the bank's quietest month of the year.

"The market remains competitive, probably more so than it's ever been in the mortgage area. Lending is slowing slightly but there are still excellent growth rates for the year.

TSB's total assets grew 10.8% to $2.5 billion in the nine months ended December.

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TSB holds its own in mortgage war

TSB Bank increased its share of the mortgage market a smidgeon in the December quarter, although its rate of profit growth slowed markedly.

Wednesday, February 22nd 2006, 9:26PM

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