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Public Trust turns around from financial shocker

Public Trust has turned around a shocking financial result last year to record a $3.7 million profit for the six months ended December.In the year ended June 2009 the Crown-owned financial and trust company racked up $47 million in losses and then had to

NZPA
Wed, 03 Mar 2010

Public Trust has turned around a shocking financial result last year to record a $3.7 million profit for the six months ended December.

In the year ended June 2009 the Crown-owned financial and trust company racked up $47 million in losses and then had to get a $30m bail out in October as it struggled to remain viable.

The cash injection followed an earlier bail out of $20m.

The six monthly $3.7m profit compared to a $11.3m deficit in the comparable period last year and Public Trust said in its report that the profit came despite a 3 percent drop in revenue.

"The improvement principally resulted from the reversal of previously recorded unrealised investment losses. It is encouraging to see unrealised losses reverse as investment market conditions improve," the report said.

There had been a 10 percent increase in fees received, but this had been more than offset by a 22 percent drop in net interest commission due market conditions and intense competition for retail deposits.

This also showed through in a $152m drop to $934m in the amount of funds under management.

Public Trust's equity position improved due to the bail out, but it said capital would still have to be built to comply with the non-bank deposit takers regime.

NZPA
Wed, 03 Mar 2010
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Public Trust turns around from financial shocker
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