TSB grows profits and mortgage book; HSBC's profit more than doubles
Locally-owned TSB Bank continued to grow both profits and its mortgage book during the March quarter while the British-owned HSBC continued to run down its mortgage book while profitability more than doubled.
Monday, June 8th 2009, 6:00AM
by Jenny Ruth
TSB's net profit for the three months rose 13.4% to $9.3 million, taking its net profit for the year ended March to $42.9 million , up 9% from the previous year.
Its charge against profit for impairment losses rose from $1.36 million December 31 to just over $3 million at March 31.
TSB's mortgage book grew by $40.5 million to $1.91 billion during the latest three months. Using Reserve Bank figures as a proxy for the market, that kept its market share steady at 1.2%.
TSB's loans with loan-to-value ratios (LVRs) below 80% accounted for 89.3% of its mortgage book. A further $62.9 million of mortgages are government-backed Welcome Home Loans, up from $50.8 million at December 31.
HSBC's profit after tax jumped 51.8% to $13.4 million in the quarter. Including "other comprehensive income" such as cashflow hedges and available-for-sale financial assets, the bottom line was $13.1 million, up from $4.4 million in the same quarter last year.
Its charges against profit for impaired loans rose to $3.2 million from $2.5 million in the year-earlier quarter.
HSBC's mortgage book shrank to $1.11 billion at March 31 from $1.16 billion at December 31 and $1.31 billion in March 2008. HSBC's loans with LVRs below 80% accounted for 91.6% of its total mortgage book.
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