PSIS Banking Profit Up
PSIS Banking Profit Up, Despite Defying Industry Trends
With a new Internet banking service ready to go, the PSIS today announced a strong year-end result for its retail banking service. It warned its larger competitors that they could only move so far from their customers before losing them altogether.
PSIS chief executive, John Price said “our operating profit is up to $7.6 million (at March 31, 2001) from $7.1 million last year and we’re putting on around 400 new customers a month.”
“And while the new Internet service will be exciting for us, it’s the PSIS commitment to “old-fashioned’ banking service standards that makes me confident we can expect more of the same in next year’s results.”
$Billion of Assets in Five Years
Two important milestones were achieved in the year to March 31 with PSIS exceeding $500 million in assets and $50 million in reserves.
“Given our present rate of growth, I expect to see us achieve the billion-dollar mark in assets within five years,” said Mr Price.
Against The Trends
Mr Price said recent enhancements such as a personal cheque facility had been good for business, and enhancements to the PSIS home loan package were eagerly anticipated.
“PSIS is no stranger to innovation,” said Mr Price. “In fact we were one of the first financial services providers to introduce telephone banking in New Zealand.”
“But I think what’s really giving us an edge in the current environment is our adherence to the old principles of banking. That is, a branch manager, living in the local community and bringing experience and knowledge to bear in dealing with his or her customers.”
“It’s not new and it’s not complicated, but in 2001 it’s right against the trend.”
“And when you combine those things with fee exemptions, lower lending rates and higher deposit rates, it’s very compelling.”
PSIS has 28 branches around the country through which it services its customers with a range of personal transactional banking products and services. Accessibility is highly valued by our customers and customers of other banks see themselves losing that.
Mr Price said also that he believed the fact of total New Zealand ownership was a real strength.
Again, it’s right against the industry trend here in New Zealand.
“But our deposits are up 11.3 percent, to $478 million for the year and loans up three percent to $392 million. So going against the trend is working for us,” said Mr Price.