KEY POINTS:
Financial services co-operative PSIS has seen its profitability dip as it continues to invest in its business.
For the year to March 31, pre-tax profit was $10 million, down from $10.7 million a year earlier.
The operating surplus from continuing activities was $8.9 million, down from $10.6 million. Net profit after tax was almost unchanged at $7.8 million.
General manager Girol Karacaoglu said that during the past three years the aim had been to continue to invest in the business, while profitability would be stable or decline a little. The key issue was return on assets. PSIS had targeted around 1 per cent and delivered 0.97 per cent in the past year.
The measure of success for PSIS was helping more people while remaining financially sound, and it had met that objective.
Customer numbers at the end of the year had been about 131,000, from 129,000 at the start. That was consistent with growth of 2000 to 3000 a year during the past four years.
The age profile of members was also lowering. Probably 60 per cent of new customers were 45 or younger, while of existing members probably 60 per cent were 50 or older.
"All these things are gradual, and the good thing for a company like PSIS being a co-operative, you can take a 10-year view and do things slowly," Karacaoglu said.
PSIS was now focusing on non-mortgage lending and insurance as a complement to its long-time core business, home loans.
It was working to gradually increase the number of customers consolidating their debts, helping customers by reducing their rates and diversifying.
- NZPA
