A fall in the value of some investments has resulted in co-operative PSIS reporting a $3.6 million after-tax loss for the year.
Company bosses emphasised that the result had no bearing on PSIS' underlying business, with the co-op making an annual operating profit for the March year
in line with expectations of $7.1 million.
Chairman David Gascoigne said PSIS had reserves of more than $95 million and had maintained a strong balance sheet, as reflected by all key risk indicators, including loan losses and arrears.
Chief executive Girol Karacaoglu said that owing to global market volatility and lack of liquidity, $38.5 million of capital guaranteed investments had fallen in value. The board had decided to value those investments at the end of March at $24.1 million - the value of the capital guarantee in today's dollars.
PSIS would receive its full investment of $38.5 million back when the investments matured. Most of the investments, which matured in stages by 2014, were capital guaranteed on maturity by bank ABN Amro and the rest by Barclay's Bank.
