TSB profits jump 30pc on dairy industry strength

TSB, the only New Zealand-owned bank, has continued to excel, with a 30 per cent jump in net profit to $16.6 million in the latest March year.

Although the bank continues to gather strength in its national operations, deposits from Taranaki also jumped by $81 million, which managing director Kevin Rimmington said probably reflected the dairy industry's strength in its home base.

"The bulk of our growth was outside Taranaki, but, this year, there certainly was a recovery in the Taranaki region," he said.

Nevertheless, Taranaki's share of TSB's $1.3 billion deposit base slipped from 70 per cent to 66 per cent.

The bank's expansion is also attracting borrowers nationwide, resulting in a declining share of Taranaki credit exposures.

At $484 million, they are equal to 61.5 per cent of the $787 million loan book, and only 35 per cent of the $1.4 billion asset base. Funds growth was at record levels in March.

With a branch network confined to Taranaki, TSB established its direct banking loan operation in 1998 to service the rest of the country.

It is now focusing its efforts on Christchurch, encouraged by strong support for its direct bank division, and has opened a new loan centre.