Upbeat TSB Bank posts 9.2pc surge in full-year profit

Taranaki-based TSB Bank reported a 9.2 per cent increase in after-tax profit and says it is insulated from the global financial crisis because it lends to everyday New Zealand families.

TSB Bank reported a $42.9 million tax-paid profit in the year ended March 31, up 9.2 per cent on last year. This is a record for the bank and its 22nd consecutive profit. It will pay its local community trust owner a record dividend of $9.2 million.

Funds on deposit increased by nearly $600 million to $3.5 billion. Loans totalled $2.1 billion and the impairment charge is $3 million. "Most of our investments, up to 65 per cent of our assets in fact, go into providing home loans for everyday New Zealand families," said managing director Kevin Rimmington.

TSB said it had a capital adequacy ratio of 16.9 per cent, well above the international standard of 8 per cent. It had no plans to outsource work. This month five people will celebrate working for the bank for 40 years.

It undertook no mortgagee sales of houses in Taranaki but there were "some in Auckland".

- NZPA