Cooperative PSIS is crediting favourable interest rate margins and low loan losses for a rise in annual pre-tax profit to $16.6 million from $10.7m the year before.PSIS chairman Sir David Gascoigne said the performance was a record and well above forecast
Cooperative PSIS is crediting favourable interest rate margins and low loan losses for a rise in annual pre-tax profit to $16.6 million from $10.7m the year before.
PSIS chairman Sir David Gascoigne said the performance was a record and well above forecast.
Low loan losses were due to prudent lending policies and effective credit risk management processes that helped PSIS identify members at risk of going into arrears and working with them to try to get them back on track.
The loan losses for the 2009/10 financial year of $3.2m -- 0.29 percent of total loans -- were considerably lower than the wider industry, Sir David said.
Deposits rose 5 percent from a year earlier to $1.12 billion, and total reserves were up $13.2m to $116.9m. After tax profit rose to $13.1m from $7.9m.
PSIS chief executive Girol Karacaoglu said the organisation's strong earnings had strengthened its already healthy capital position and provided it with a firm base for future growth.
Interest margins were predicted to contract, and while PSIS anticipated the economic recovery would be slow, it was also expecting that loan losses would continue to reduce.
A more normalised, yet sound, profit was expected for 2010/11, Dr Karacaoglu said.
