Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


‘Record Result by CBS Canterbury”


‘Record Result by CBS Canterbury”

CBS Canterbury reports significant business growth that has resulted in a 50.1% increase in pre-tax net operating surplus for the six months ended 30 September 2007.

”The pre-tax net operating surplus (prior to a special preference dividend) for the period is $1,792,316 which compares with $1,194,218 the same period last year and $2,464,061 achieved for the full year ended 31 March 2007,” said CBS Canterbury chairman Mr Graham Kennedy.

“This is an excellent result by any measure and equates to an annualised 34 cents per share after tax earnings for the period (prior to special preference dividend), compared to 24 cents for the full year to 31 March 2007, and was achieved on the society’s increased ordinary capital.”

“The result can be attributed to the solid support for the building society from the community in which we operate. Advances are up strongly in the period to $292,155,568, compared with $272,609,452 a year earlier and $270,764,641 at 31 March 2007.”

“That increased lending activity has contributed to a lift in total assets to $351,830,681 ($346,282,347 last year).”

“The board is very comfortable with the quality of the lending book represented by advances and, with no arrears at 30 September, there was no need for any doubtful debt provisioning.”

The current lending profile is residential lending at 53.7%, commercial lending 42.4% and farming related lending 3.9%.

Mr Kennedy said the interest rate market remains “extremely competitive and directors do not expect any change in the near future from the higher level of rates now prevailing while the Reserve Bank continues to promote a tight anti-inflation monetary policy.”


Gross contribution from activities is 13.4% ahead of last year at $4,322,634 ($3,812,872).

Finance charges including interest paid on deposits made with CBS Canterbury totalled $11,982,676 ($12,904,158).

“In essence, this means we have performed well, with a bigger lending book lent at improved margins.”

The successful amalgamation with SMC Building Society completed in 2006, and tighter controls, has resulted in recognisable cost savings during the period.


During the period CBS Canterbury received shareholder approval for the redemption of the Society’s preference share capital at $1 per preference share and made a non-renounceable 1 for 10 rights issue of ordinary shares to replace that capital. The proposal arose out of the need to comply from 1 April 2007 with the new NZ IFRS accounting rule that effectively treats preference capital as a financial liability as distinct from equity capital.

The number of ordinary shares on issue rose accordingly to 7,347,838 as at 30 September 2007 from 6,546,260 as at 31 March 2007, as a result of this issue.


In association with the preference share redemption, the Society paid a fully imputed final dividend of 41 cents per preference share including a 37 cent special bonus dividend.

A fully imputed interim dividend of 8 cents per ordinary share will subsequently be paid on 30 November 2007.


“It is a requirement of NZ- IFRS that we state the special bonus dividend on preference shares as a special finance charge taken above the line in our income statement. Under previous accounting rules such a charge would have been reflected in movements in equity rather than income statement.”

“The payment of this one-off special bonus dividend of $1,110,000 has the effect of adjusting our net operating surplus to a net surplus before tax of $682,316 ($1,194,218). After tax of $596,278 ($405,024) has been deducted, the adjusted net surplus is $86,038 ($789,194).


“Our actual after tax trading result for the six months is $1,196,038 (prior to special preference dividend), which is $406,844 or 51.55% ahead of the corresponding period last year.”

“CBS Canterbury maintains a strong financial position with end of period equity standing at $28.67m, up 19.1% on the same period of 2006.”

Total assets stand at $351.83m ($346.28m) and total liabilities at $323.16m ($322.21m), leaving net assets at $28.67m ($24.07m).


The directors of CBS Canterbury forecast that margins will come under pressure in the second six months as the cost of funds rises, but that the financial results for the full year ended 31 March 2008 will be significantly higher than in 2007.

They also look forward to successful shareholder meetings in December to approve the Loan & Building-CBS Canterbury merger proposal. Documentation related to the merger proposal will be mailed to shareholders shortly. The directors see the merger proposal as a positive step in the growth of a Canterbury-focused banking services business.


© Scoop Media

Business Headlines | Sci-Tech Headlines


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>