Chairman John Ward said, “While SBS Bank has been a key contributor, with significant growth in both residential lending and retail deposits, this outstanding full-year result reflects strong performance across the entire SBS Group, with all three subsidiaries, Finance Now, FANZ and Southsure, outperforming their targets.”
SBS Bank’s competitive interest rates and ongoing improvements in its service offering have helped drive an increase in residential lending, reflected in total lending advances of $3.4 billion, up 19%, and a 9% increase in retail deposits to $3 billion.
“In what has been an extremely competitive market over the past 12 months, this result validates the progress we are making on realising our growth strategy by simplifying products, services and processes, providing tangible Member benefits, and leveraging synergies across the SBS Group,” Ward said.
Asset growth of $582 million was largely driven by the increase in residential lending. SBS Bank Members’ equity was $270 million, up 14.3%, and the bank’s capital adequacy sits well above the regulatory minimums.
Group chief executive Shaun Drylie, who took up the role in August, said the result reflects SBS Bank’s strategy to make it easier for members to do their banking.
While New Zealand’s economy remains in strong shape, experts suggest there may be a slowdown in growth, citing housing market vulnerabilities and dairy sector downturn as the biggest domestic financial risks.
“Whilst 2017 produced a very acceptable result we are now very focused on the future," Ward said. "The 2018 financial year will involve challenges but opportunities too. ”
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