SBS Bank Reports Solid Full-year Result, Supports First-home Buyers

SBS Bank has delivered another strong result for the 2021-2022 financial year, finding innovative ways to support members through the challenges of the Covid-19 pandemic.

The SBS Group, which includes subsidiaries Finance Now, FANZ and SBS Insurance (Southsure), reported an operating surplus of $61.3 million for the year ending March 2022, up from $55.2 million the previous year.

The bank’s lending rose $365 million to $4.4 billion during the period and SBS Bank members’ equity increased $74 million to $463 million.

SBS Bank Chairman Joe O’Connell said: “In a challenging year for New Zealanders, I’d like to thank our members for their ongoing loyalty to SBS. Being able to report an end-of-year operating surplus of $61.3 million is a testament to the hard work and dedication of all the SBS team across New Zealand. As a Board we are collectively delighted at how the SBS teams have responded to the ever-changing environment,” he said.

“The main factor that contributed to such a successful annual result was an improvement in net interest income, resulting from a growing balance sheet and increasing interest rates.” Mr O’Connell said.

Providing mutual benefits – supporting members into their own homes

SBS Bank Group CEO Mark McLean said the bank had been heavily focused on development and innovation through its suite of products and services throughout the year.

“We were excited to launch our SBS FirstHome Combo package in August 2021, combining product offerings from the whole SBS Group including a highly-competitive first home buyer’s home loan which is currently 3.49% (as at 3 June 2022),” Mr McLean said.

Our new first home lending was 34% of our total new home lending, with Kāinga Ora – Homes and Communities accounting for 47% of new lending on first homes.

“We’re delighted that, despite the challenges of Covid-19 and the housing market, we’ve been able to help more than 850 first home buyers from all around New Zealand into their homes between April 1 2021 and March 31 2022,” Mr McLean said.

85% of these new first homebuyers were located outside of Southland.

“Getting members into their own homes was the reason we were founded more than 150 years ago and remains one of our key strategic focus areas,” Mr McLean said.

A highlight of the last year included winning the Canstar 2022 Bank of the Year – Home Loans.

‘As a mutual organisation, to be recognised as the market-leader in this area is extremely rewarding as we strive to provide the best value for our members,” Mr McLean said.

SBS also continues to support a number of charities and not-for-profit organisations such as Breast Cancer Foundation NZ, Ronald McDonald House South Island, The Graeme Dingle Foundation, Volunteer South, the Southland Loss and Grief Centre and the Timaru Family Works Food Bank.

Market-leading term deposit rate announced

SBS Bank has today announced a new 12 month term investment rate of 4.00% p.a.

“Our strong result ensures we are able to pass on additional financial benefits to our members through market-leading interest rates and product innovation, which includes assisting our members through digital inclusion programmes to ensure all members feel more confident with accessing both our network of physical branches as well as our digital channels,” Mr McLean said.

Contact: media@sbsbank.co.nz - Mandy Oosterbroek 027 500 1247

About SBS Bank
Established in 1869, SBS Bank is a building society that has achieved bank registration while retaining its mutual structure. Mutual ownership means SBS Bank is 100% owned by its members (customers) and is uniquely positioned to provide benefits to its members. SBS Bank has 14 branches across the North and South Islands and a full online banking service. Total assets of the SBS Group are $5.2 billion.

SBS in the community
SBS is proud of our commitment to our communities and the diverse range of organisations we have been able to help though our sponsorship programme. This has included Breast Cancer Foundation NZ, Ronald McDonald House South Island, The Graeme Dingle Foundation, Volunteer South, the Southland Loss and Grief Centre and the Timaru Family Works Food Bank.

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