Full-year result shows balanced growth and solid future

SBS Bank’s full-year result shows balanced growth and a solid future

SBS Bank is reporting a solid financial result for the financial year ending 31 March 2018, with an operating surplus of $35 million. While this is marginally down on the previous year, this reflects the acquisition costs of the Warehouse Group Financial Services, which will assist in positioning the bank for the future.

Group CEO Shaun Drylie said, “In our 150th year, the organisation remains in good financial health and continues to perform well. Our result reflects balanced growth, with lending up $388 million (11%) on last year, alongside strong retail funding growth, up $337 million (11%).

“While SBS Bank has been a key contributor, with continued growth in both residential lending and retail deposits, this also reflects strong performance across the entire SBS Group, including subsidiaries Finance Now, FANZ and Southsure.”

SBS Bank’s total capital ratio has increased across the year to 12.8% and remains well above the regulatory minimum (8%), despite the costs incurred for the acquisition of Warehouse Group Financial Services.

Chairman John Ward said, “This acquisition was a strategic decision to facilitate growth and leverage various technology platforms that exist within Warehouse Group Financial Services for the benefit of the entire SBS Group.

“The fact that we’ve been able to complete this transaction, in the face of the unique challenges a mutual bank has in respect of the capital instruments available to it, while at the same time improving our capital adequacy over the year, is a testament to the prudent approach our executive team and staff take to the bank’s evolution.”

SBS Bank Members’ equity was up $28 million on the previous year to $295 million. For Members, other key developments over the past year have included the removal of other bank ATM fees as well as enhanced service improvements from recent investments in technology and staff development.

Mr Drylie said, “Our inherent focus on delivering value to our Members is our absolute priority as an organisation, given that they are not only our customers but also our owners.

“They can have confidence in their bank’s future, following another strong financial result, as well initiatives that demonstrate our ongoing commitment to meeting changing consumer needs.”

ENDS

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