TSB post healthy full year profits
(3 June 2016 – New Zealand) TSB Bank this week announced a record pre-tax profit for the 12 months to 31 March 2016 of NZ$85.6 million (A$80.7 million).
It said the increase was a result of continued focus on revenue growth and cost containment.
The bank’s CEO Kevin Murphy said: “I am pleased with this year’s results. We experienced another year of strong financial performance as a result of our ongoing focus on meeting customers’ needs with desirable products while controlling costs in line with a declining margin.”
In a statement, the bank said that over that last year, it “continued listening to feedback to enhance and expand its products and services to create a better customer experience.”
”We also invested in our people, processes and tools for our business in order to improve our bench strength and better position the Bank for long-term growth," Murphy said.
"As a result, our cost to income rate has increased from 39 percent to 46.6% and while we expect this figure may increase over the coming year as we continue to build our capacity, it is forecast to trend back to the low forties thereafter.”
TSB Bank's Capital Adequacy Ratio sits at 14.52 percent, well above the minimum requirements of 10.5 percent set by the New Zealand Reserve Bank.
“We continue to operate with a well-funded balance sheet and outrank much of the sector in efficiency, without compromising our renowned focus on building our relationships with customers and improving their experience with our products and services,” said Murphy.
In the statement, the lender added that it will focus on improving customers’ experience and it’s digital platforms in the year ahead.
“As the industry becomes more competitive, we must stay focused on putting customers’ interests first.
“We look forward to continuing to help New Zealanders get ahead with the goal of making banking really easy for them – every time and everywhere,” Murphy concluded.
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