After a priority focus on strengthening its foundations over the past three years, and a significant investment in technology, products and compliance in the past 12 months, TSB is ready to springboard into a new era of profitable growth and innovation.

In its annual results released today, TSB reported a profit before tax of $53.5 million for the year ending 31 March 2022.

TSB also reported solid growth, with lending assets increasing a further 5 per cent during the year, and residential lending growing by $371 million.

Importantly, TSB paid $12.5 million in fully imputed dividends to its shareholder, Toi Foundation, to support their mahi assisting critical community kaupapa, events and organisations across Taranaki.

TSB CEO Donna Cooper says the past financial year has marked an important turning point for TSB.

“Our focus and investment in the past three years – and last 12 months in particular – was required to set us up for the future. We’ve had a massive amount of work to do, but now we’re ready to springboard into a new era of profitable growth and innovation,” says Ms Cooper.

“There is no doubt that the past 12 months have required some brave decisions about our priorities and resources.

“The last financial year saw a major compliance uplift, a significant upgrade of our systems and technology, an ongoing COVID-19 response and considerable regulatory developments in the New Zealand banking industry.

“Despite this, we have delivered a solid financial result and shareholder dividend, along with some key customer initiatives. At the same time, we were awarded Consumer New Zealand People’s Choice for the seventh year in a row – the only bank to have achieved this consecutive record.

“Customer service awards are earned because of people and a genuine commitment to helping others. This is what our TSB whānau bring to the table every single day and they have done us extremely proud.”

Ms Cooper says as a result of the work to strengthen its foundations, TSB is set to turn up the dial on customer service, alongside the release of key products and innovations.

“Customers are already seeing the benefits of our investment on the ground through new developments like our TSB Debit Mastercard®, the new online Business Banking platform, and the opening of our $2 million dedicated Customer Lending Hub in New Plymouth.

“There will continue to be challenges to overcome, but we’re in the best possible position to move this very special bank forward. It’s a fantastic place to be.”

TSB’s year-end results come against the backdrop of significant regulatory developments within the banking industry, following the implementation of changes to the Credit Contracts and Consumer Finance Act (CCCFA). 

TSB Chair Mark Darrow says there is no doubt the CCCFA changes had an impact on the bank and its customers.
“TSB is focused on supporting New Zealanders achieve their life goals through the best possible financial outcomes. We’ll continue to advocate for our customers,” says Mr Darrow.

“Despite the national and global challenges and significant investment in compliance and back office systems, the TSB team has delivered an on-target profit and solid asset growth. 

“In turn, this work puts us in good stead for future profitable growth and innovation. We have a clear business plan that ensures we can achieve this, as well as be the bank that our shareholder, customers, people and community want and need us to be,” says Darrow. 
“TSB literally offers a world of potential. We operate in a sector that continues to see significant regulatory, market, competitor and technology change. If we position ourselves appropriately, we will be well placed to leverage these changes to create immense opportunity.”

Darrow has been Board Chair for TSB since March 2022, following the retirement of long-standing Chairman, John Kelly, in March. 

Key financial results for the year ended 31 March 2022

  • $53.5 million profit before tax 
  • $12.5 million fully imputed dividends paid to Toi Foundation
  • Lending assets increased by 5% 
  • Residential lending growth of $371 million

ENDS

For more information contact:

Simone McCallum
TSB Media & Communications Manager    
027 285 4479 / simone.mccallum@tsb.co.nz