TSB Bank has reported a 21% increase in annual profit and noted the contrast in performance with foreign banks and finance companies.The pre-tax profit of $74.3 million in the 12 months to March 31 is up $13.1 million on the same period last year and is a
TSB Bank has reported a 21% increase in annual profit and noted the contrast in performance with foreign banks and finance companies.
The pre-tax profit of $74.3 million in the 12 months to March 31 is up $13.1 million on the same period last year and is a record.
"Delivering our 23rd year of record profit at this time is a reflection of the bank's ownership, funding and investment strategy, which has largely shielded us from the effects experienced by internationally owned banks," chief executive Kevin Murphy said.
The former Taranaki Savings Bank is New Zealand-owned and its profits are retained in New Zealand.
The bank said it continued to experience exceptional funds growth with depositors' funds reaching a milestone $4 billion.
This growth, a 30% increase in 18 months, was achieved during a period of uncertainty in the international financial markets and collapse of the finance company sector in New Zealand, which led to increased consumer confidence in TSB Bank.
During the year the bank opened a new service centre in Christchurch. It has added nine offices to its national network since 2005.
"TSB Bank has been around for almost 160 years, and even though we're now a national bank with branches and customers nationwide, we're still committed to providing the same, high level of customer service that we've always been known for. That's why up to 50% of our customers come to us on the recommendation of friends or family," said Mr Murphy.
