by Jenny Ruth
The bank's September quarter general disclosure statement shows net profit rose 26% to $17.4 million, taking its profit for the six months ended September to $29.3 million, up 20% on the same six months a year earlier.
The profit increase was despite a further $1.04 million charge against profit for bad loans. TSB's total bad loans at September 30 were $5.3 million, up from $2.4 million at March 31.
Net interest income grew 28.9% to $32.6 million in the September quarter.
TSB's mortgage book grew by $225.7 million to $2.05 billion in the quarter. Using the Reserve Bank's figures as a proxy for the mortgage market, TSB accounted for 14.7% of new lending by registered banks in the quarter compared with its market share of just 1.27% at September 30.
About 13.5% of TSB's mortgage book, or $277.3 million, has loan-to-value ratios (LVRs) above 80% and 6.8%, $138.4 million, has LVRs above 90%. Of those $127.7 million were government-backed Welcome Home Loans.
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