TSB Bank rakes in eighteenth record profit

Taranaki's strong economy and booming property market contributed to TSB Bank posting its eighteenth consecutive record annual profit.

TSB Bank's net profit after tax of $27.97 million was a 20 per cent increase on the $23.15 million it made last year.

TSB Bank managing director Kevin Rimmington said it had been a great year.

"We again exceeded our business plan targets for lending and funds growth, helped by the buoyant economy and economic growth in the Taranaki region."

Of the bank's $1.49 billion lending portfolio, $1.35 billion was in residential lending.

A total of $347 million in residential loans was approved to the bank's Taranaki customers, up on the previous year's $291 million.

"Although an unprecedented level of lending was provided in Taranaki, for the second successive year, more than half the bank's lending portfolio was to customers outside the region."

Depositors' funds grew to $2.13 billion, up on the $1.89 billion the previous year.

The bank will pay a record $6.27 million dividend to its only shareholder, the TSB Community Trust.

"We are proud of the fact that TSB Bank continues to be this country's only New Zealand-owned bank that is non-taxpayer funded, and is growing at a substantial rate," Rimmington said.

Net operating surplus before tax was $41.75 million, while total assets increased to nearly $2.34 billion.

- NZPA