By Gareth Vaughan
TSB Bank's September quarter profit climbed 13% as income rose at more than twice the rate of expenses.
The bank's General Disclosure Statement for the six months to September 30 shows net profit after tax for the three months to September up NZ$1.341 million, or 13%, to NZ$11.939 million from NZ$10.598 million in the same period of last year.
The profit increase came as net interest income rose NZ$2.457 million, or 11%, to NZ$25.536 million and net operating income rose NZ$3.795 million, or 14%, to NZ$29.976 million, easily outstripping a NZ$672,000, or 6% rise in operating expenses to NZ$11.956 million. Impairment losses rose to NZ$1.431 million from NZ$499,000.
Over the quarter TSB grew gross lending by NZ$44.162 million to NZ$2.720 billion, with residential mortgage lending up NZ$36.317 million to NZ$2.428 billion.
Total assets rose NZ$64.481 million to NZ$4.977 billion and total liabilities advanced NZ$55.422 million to NZ$4.598 billion with deposits up NZ$50.070 million to NZ$4.561 billion, including a NZ$37.762 million rise in retail term deposits to NZ$2.243 billion.
Impaired assets, meanwhile, fell NZ$491,000 to NZ$4.013 million and assets at least 90 days past due rose NZ$460,000 to NZ$7.259 million.
TSB's tier one capital ratio rose slightly to 16.09% at September 30 from 15.64% at June 30 and its total capital ratio fell slightly to 16.09% from 16.16%. The Reserve Bank mandated minimums are 4% and 8%, respectively.
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