About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, February 21st, 6:02PM
Mortgage Rates Daily Commentary
Friday 21 February 2020  Add your comment
What will happen to insurance premiums under the new regime?

Improved industry standards could stabilise insurance premiums under the new financial advisers regulatory regime, according to one industry expert: [READ ON]

rss
Latest Headlines

Quakes hit SBS Bank's profit and mortgage book

SBS Bank's profit fell in the September quarter and its mortgage book shrank, both reflecting the impact of the Christchurch earthquakes.

Wednesday, November 30th 2011, 10:29PM 1 Comment

"The issue for us is, historically, 25% of our business has come from Christchurch," says SBS finance general manager Tim Loan.

Mortgage lending has fallen because people in Christchurch are getting earthquake-related payouts but aren't able to rebuild yet, Loan says

SBS's latest disclosure statement shows its mortgage book fell by $22.7 million to $1.78 billion in the three months ended September, the fourth successive quarter it has declined.

But on the positive side, SBS's liquidity has increased markedly. Its funds with financial institutions more than doubled to $105 million from $48.8 million six months earlier and investment securities jumped $45.5 million to $165.7 million in the same six months.

"We're well-placed to assist with the rebuild in Christchurch," Loan says. Essentially, that comes down to when the earth stops shaking so much.

SBS's net profit near halved to $2.8 million in the three months ended September compared with $5.4 million in the same three months last year, mainly because charges against profit for bad loans more than doubled to $5 million from $2.2 million. The bank's net interest income rose 4.4% to $43.5 million in the three months.

"It would be fair to say the actual losses we're getting through from the earthquake are almost none," Loan says.

Because of this, there's a good chance SBS will release some of that provisioning later on but, because of the uncertainties still surrounding Christchurch, it deems it prudent to keep provisioning high for the moment.

For the first time, SBS provided a break-down of the type of lending its charges for bad loans are coming from. Only $552 million of the $8 million charged against profit in the six months ended September were from residential mortgages, $1.9 million was from retail exposures and the majority, $5.5 million, was from corporate exposures.

Loan says the latter relates to commercial property exposures in Christchurch and to its rural lending, particularly to the viticultural sector in Central Otago which is still struggling. The provisioning also relates to some borrowers who also had loans from second tier financiers such as the collapsed South Canterbury Finance and which have put SBS's loans at risk, he says.

« The cost of NZF's finance company failureANZ's Sept Qtr profit jumps but mortgage book shrinks again »

Special Offers

Comments from our readers

On 3 December 2011 at 10:59 am Aaron said:
I think you mean $552 thousand in the bad loans breakdown, not $552 million?
Commenting is closed

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 3.95 4.15 4.49
ANZ Special - 3.45 3.65 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.49 3.55 3.89
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
Lender Flt 1yr 2yr 3yr
China Construction Bank Special - 3.19 3.19 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.65 4.80 -
HSBC Premier 5.24 3.54 3.20 3.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.97 4.05 4.39
Kiwibank 5.15 4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.45 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Lender Flt 1yr 2yr 3yr
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.39 3.55 3.89
Sovereign 5.30 3.89 4.05 4.39
Sovereign Special - 3.39 3.55 3.89
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
Lender Flt 1yr 2yr 3yr
TSB Bank 6.09 4.19 4.35 4.69
TSB Special 5.29 3.39 3.55 3.89
Wairarapa Building Society 5.50 3.95 4.05 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.55 3.99
Median 5.34 3.96 4.09 4.39

Last updated: 21 February 2020 4:32pm

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com