SBS result 'pleasing'

Southland Building Society last night reported its second-highest surplus in its 139-year history with net profit of $21.3 million .

Chief executive Ross Smith said the result was "pleasing" in the current financial market.

SBS assets were at $2.4 billion, members' reserves at $151 million, the company maintained a BBB credit rating and all subsidiaries contributed positively to the bottom line, Smith said.

"At the tender age of 139 we are as strong as we have ever been. We are a conservative lender with limited exposure to high-risk commercial developments. Over the past year we have launched a number of initiatives on both sides of our balance sheet to spread our exposure to any risk."

Retail deposits grew over $120 million.

SBS directors Mike Piper and Warren Conway have announced their retirement from the board.

Smith said both were supportive of SBS' efforts to gain a bank licence and the society had been in talks with the Reserve Bank to that end.

"We have plans to be a national player in retail banking and lead some rationalisation of the non-bank sector."

- NZPA