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SBS

SBS Bank reports higher surplus, says open to mergers

SBS Bank, the former Southland Building Society, reported an operating surplus of $19.4 million in the year to March 31, up from $18.5m last year and said it is open to mergers with like-minded organisations. The net surplus after tax of $15m is up from $12m last year and is the highest since 2007. SBS Bank chief executive Ross Smith said it was pleasing performance in one of the most difficult economic periods in the 141-year-old history of the organisation.

SBS Bank in merger talks with HBS

SBS Bank, the former Southland Building Society, is merging with HBS Building Society in the latest consolidation in the financial sector. A heads of agreement has been signed to pursue a merger and both boards are in unanimous support. If the merger is approved, the targeted effective date is October 1. The agreement provides for the retention of all staff and management at HBS and the 125-year-old HBS brand. There is also a guarantee for continued and increased community distributions through sponsorships and an initial interest rate premium for term depositors.

SBS Bank and HBS merger plan favours HBS - Fitch

Fitch Ratings said the advantages of a proposed merger of SBS Bank, the former Southland Building Society, and Hawke's Bay-based HBS Building Society are more obvious for HBS. Fitch today affirmed the ratings of both after they said yesterday they have signed a heads of agreement to pursue a merger supported by both boards. If the merger is approved, the targeted effective date is October 1. Fitch expects the merger to deliver a larger and more diversified financial institution and said the two are a good cultural fit.

HBS shareholders approve merger with SBS

HBS Building Society has received shareholder approval for its proposed merger with SBS Bank, the former Southland Building Society. At a special shareholder meeting today, 98 percent voted in favour, significantly over the 75 percent threshold required to ratify the merger. "That this number of members chose to vote affirmatively is a clear mandate that the HBS board has identified the right way to secure the future of our organisation," HBS chairman Frank Spencer said.