By Gareth Vaughan
TSB Bank's net profit for the three months to December rose 27% as income rose at nearly three times the pace of expenses and loan impairments fell.
The bank's latest General Disclosure Statement (GDS) shows net profit after tax rose NZ$2.845 million, or 27%, in the three months to December 31, 2011 to NZ$13.206 million from NZ$10.361 million in the same period of last year. The profit growth came as net interest income rose NZ$3.209 million, or 14%, to NZ$26.847 million and total operating income rose NZ$3.769 million, also 14%, to NZ$30.540 million.
Operating expenses increased NZ$590,000, or 5%, to NZ$11.650 million and impairment losses on loans fell NZ$360,000, or 40%, to NZ$535,000.
Over the quarter TSB's gross loans and advances to customers rose just under NZ$9 million to NZ$2.729 billion as deposits from customers jumped NZ$152 million to NZ$4.713 billion.
On the lending front growth came in commercial loans, up NZ$3.7 million to NZ$146.9 million, and farming loans up NZ$2.471 million to NZ$95.753 million. Residential mortgage lending barely rose, up just over NZ$1 million to NZ$2.429 billion from NZ$2.428 billion.
90 day past due loans rose NZ$176,000 to NZ$7.435 million and individually impaired assets fell NZ$1.685 million to NZ$2.328 million.
TSB's tier one capital ratio fell to 15.10% at December 31 from 16.09% at September 30 and its total capital ratio fell to 15.63% from 16.09%. The Reserve Bank mandated minimums are 4% and 8%, respectively. TSB has a BBB+ credit rating from Standard & Poor's with a stable outlook.
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