TSB puts profit to purpose with solid annual result in recovering economy

TSB has today reported a net profit before tax for the year ended 31 March 2021 of $59.6 million, up 44% from the previous year, and confirmed a dividend of $7.5 million to its philanthropic shareholder.

CEO Donna Cooper says TSB’s annual result has been driven by better than projected economic conditions, with the expected credit loss provision for Covid-19 having largely stabilised.

“This result shows New Zealand’s economy is tracking better than expected, and TSB is in a strong position to continue living to our purpose to unleash our unparalleled customer care for community good, while our country’s recovery is ongoing.

“We’re pleased that despite the uncertainty Covid-19 provided throughout the year, TSB has paid a $7.5 million dividend to our shareholder Toi Foundation (formerly TSB Community Trust) to support its philanthropic work. This is a fantastic outcome for our communities after a challenging year.”

TSB has also taken its community good a step further in the last year by launching TSB Good Stuff - an annual programme giving out $250,000 in grants to Kiwis with great ideas to support New Zealand. Applications for the second year of grants are currently being judged.

Ms Cooper says TSB’s ownership structure, which sees it use its profit for purpose, is a point of difference in the New Zealand banking industry and it genuinely influences how the bank operates.

“Being owned by Toi Foundation means doing what’s best for our customers and communities is authentically at the core of our business. This year we’ve proved that more than ever. Covid-19 significantly shifted the focus for our bank for much for the year as we pivoted to provide an extra level of care and support to customers in times of need. For example, we proactively contacted all customers who’d missed a payment, as well as customers over 70-years-old, to check in and see how we could support them. 

“This is why TSB has just been named the Consumer New Zealand People’s Choice Award for banking for the sixth year in a row, with 82% of customers surveyed very satisfied with the service at TSB, against a nationwide industry average of 64%,” says Ms Cooper.

“To win this award for the sixth year in a row, especially with New Zealanders needing to be supported in new ways and in challenging circumstances due to Covid-19, is fantastic recognition of the extra lengths our people go to for our customers and communities.”

Ms Cooper says providing that level of service is simply the TSB way, so over the last year the bank has used this as inspiration to further enhance its customer experience model, investing approximately $17 million into technology, people and property.

“We asked our customers what they wanted from their bank and they told us they wanted to have access to experienced lenders for more complex needs, to primarily deal with one person and more private and welcoming in-person environments.

“We’ve taken that feedback on board and launched a dedicated, larger specialist lending team, created a new unit to support small to medium sized businesses, and employed several additional specialised employees,” says Ms Cooper.

In November TSB also returned to the heart of the city in Christchurch with a freshly designed branch after relocating to a temporary site following the earthquakes. 

“Our new Christchurch branch trials a new style of in-person banking for TSB, focused on having quality conversations and a modern approach to transactional support services. We’ll use this as the blueprint for future branch enhancements across TSB, as well as for our exciting new Customer Lending Hub which we’re opening in New Plymouth in Spring.

“The state-of-the-art Customer Lending Hub will feature modern fit-for-purpose meeting spaces, a seating arena for hosting in person and virtual seminars, and purpose-built areas for hosting video call appointments. This space will support our people to provide quality, personalised service and advice in the moments that matter, for customers anywhere in New Zealand.”

Ms Cooper says TSB like every organisation, has things it needs to improve on, and the bank is committed to identifying any areas needing attention and building stronger foundations going forward.

“Over the last two years, a priority focus has been uplifting our risk and compliance maturity. We’ve made significant progress in this space, investing in strong expertise, capability and capacity across our business, and we’ve made significant progress in building the right culture and supporting programmes and tools to deliver in this space. 

“We will always continue our focus here because the journey we’re on at TSB is about enhancing what we do, to get even better outcomes for our customers and communities.”

The TSB 2021 Annual Report and Disclosure Statement for the year ended 31 March 2021 can be viewed at tsb.co.nz/about/financial-information.

For more information contact:

Philippa Walker
TSB Media & Communications Manager


027 378 3759 / philippa.walker@tsb.co.nz