Co-operative Bank's first General Disclosure Statement shows profit nearly halved in the June quarter

Co-operative Bank's first General Disclosure Statement shows profit nearly halved in the June quarter

By Gareth Vaughan

The Co-operative Bank has released its first General Disclosure Statement (GDS) since the former PSIS obtained banking registration from the Reserve Bank last month and it shows June quarter profit down 47%.

The GDS shows the new bank made profit after tax attributable to its members of NZ$1.302 million in the three months to June, down NZ$1.116 million, or 47%, from NZ$2.418 million in the same period of last year. The profit drop came as net operating income fell NZ$1.220, or 8%, to NZ$14.530 million and operating expenses rose NZ$1 million, or 8%, to NZ$13.378 million.

Total assets, as of June 30, rose slightly to NZ$1.457 billion from NZ$1.451 billion at March 31 with total liabilities up to NZ$1.332 billion from NZ$1.327 billion. Total loans rose about NZ$13 million in the quarter to NZ$1.176 billion and total deposits rose NZ$11 million to NZ$1.173 billion.

Meanwhile, the GDS showed a 17.4% tier one capital ratio, up from 17.3% at March 31 and well above the Reserve Bank mandated minimum of 4%, and a total capital ratio of 18.1%, up from 17.7% at March 31 and well above the regulatory minimum of 8%. Member's reserves rose to NZ$125.376 million at June 30 from NZ$124 million at March 31.

The Co-operative Bank has a BBB- credit rating from Standard & Poor's, which is S&P's lowest investment grade rating.

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