TSB lifts Sept Qtr profit, grows mortgage book

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TSB Bank's net profit rose 12.7% in the September quarter despite a jump in charges against profit for bad loans and its mortgage book grew faster than its market share.

Thursday, November 24th 2011, 6:40AM 1 Comment

The community-owned bank's September quarter disclosure document shows net profit rose to $11.9 million in the three months ended September, up from $10.6 million in the same quarter last year.

While charges against profit for bad loans jumped to $1.4 million from $0.5 million in the year-earlier quarter, that was offset by a 43% jump in other operating income, including commission from TSB Realty and TSB Foreign Exchange, to $4.4 million.

TSB's mortgage book grew by $36.3 million to $2.42 billion in the three months ended September.

Using Reserve Bank figures as a proxy for the market, TSB accounted for 6.3% of all net new mortgages written by registered banks in the quarter although its market share was 1.44%, up from 1.42% at the end of June.

Of TSB's mortgage book, 80.4% had loan-to-valuation ratios (LVRs) of 80% or less while 12.1% had LVRs above 90%. Most of the latter are government-backed Welcome Home Loans.

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