By Gareth Vaughan
TSB Bank, which last week stepped into the KiwiSaver market as a major player by announcing it was buying a 26% stake in Tower purchaser Fisher Funds Management, has posted a 5% rise in December quarter profit.
TSB's General Disclosure Statement for the nine months to December 31 shows the bank's net profit before tax rose NZ$600,000 to NZ$13.8 million in the December quarter from NZ$13.2 million in the same period of 2011. The rise in profit came as net operating income rose 6% and operating expenses increased just 3%. Gross lending rose 1.8% in the December quarter and deposits from customers increased 3%.
For the three months to December 31 TSB's net interest income rose NZ$400,000, or 1%, to NZ$27.2 million. Net operating income rose NZ$1.7 million to NZ$32.2 million. Operating expense increased NZ$350,000 to NZ$12 million. Impairment losses rose NZ$436,000, or 81%, to NZ$971,000.
Total gross loans were up NZ$50.4 million to NZ$2.8 billion. There were increases in all of residential mortgages, commercial and farming loans. Home loans were up NZ$27.5 million to NZ$2.47 billion. Loans to businesses increased NZ$17.2 million to NZ$180.8 million, and farming loans were up NZ$5.9 million to NZ$119.8 million.
Individually impaired assets increased NZ$383,000, to NZ$3.46 million, and 90 day past due assets rose NZ$780,000 to NZ$9.3 million.
Total deposits were up NZ$125.7 million to NZ$4.9 billion.
TSB's total assets increased NZ$144.4 million to NZ$5.4 billion, and its total liabilities rose NZ$130.6 million to NZ$4.9 billion. Shareholder's equity rose NZ$13.8 million to NZ$433.5 million. The bank's tier one capital ratio, representing shareholder's funds in the bank, fell to 14.46% at December 31 from 15.39% at September 30. Its total capital ratio dropped to 14.93% from 15.39%.
Owned by the TSB Community Trust, the bank paid dividends totaling NZ$10.72 million in the nine months to December 31, 2012, up NZ$1.64 million, or 18%, from the same period of 2011.
This article was first published in our email for paid subscribers. See here for more details and to subscribe.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.