Co-Operative Bank posts 24pc lift in profit

Bruce McLachlan. Photo / NZME.

The Co-Operative Bank has posted a 24 per cent lift in annual profit, while also boosting its rebate to customers.

Chief executive Bruce McLachlan said the lender, previously known as PSIS, had increased overall profits by 59 per cent and added 35,000 new customers since becoming a registered bank in October 2011.

Net profit rose to $8.9 million in the 12 months to March 31 from $7.1 million a year earlier.

The bank, which shares its profits with customers, also increased its client rebate by 38.5 per cent to $1.8 million.

Profit before rebates and tax rose 30.9 per cent to $13.4 million, while net operating income increased 8.4 per cent to $66.2 million and deposits jumped 12.1 per cent to $1.6 billion.

Its loan book increased by 10.9 per cent to $1.6 billion.

"This reflects our consistent approach to pricing, setting the bank apart from its competitors who have tended to drift in and out of the market with aggressive pricing as it has suited them," McLachlan said.

Bad debts fell 31.7 per cent to $1 million.

The bank said its capital and liquidity ratios of 16.5 per cent remained the highest of any New Zealand bank.

The Wellington-based lender opened a branch on Auckland's Queen St last November and has flagged plans to establish up to six more in the city.