News Bites

SBS operating surplus jumps, targets reverse mortgage growth

The SBS Group reported an operating surplus of $55.2 million for the year ending March 2021, up from $21.3 million in the previous 12 months.

SBS Bank Members’ Equity was up $58 million, or 17.3%, on last year to $389 million.

The bank's total capital ratio also increased to 15.7% from 13.8%, providing the bank headroom from the 8% regulatory minimum.

The Southland-based lender's housing book grew by less than 1% in the year, while gross lending contracted by 3%. 

Chief executive Shaun Drylie has pinpointed further growth in the bank's reverse mortgage business, after it launched its revamped 'Unwind' product a year ago.

The bank is expected to pare back its commercial and agri lending to focus on home lending and its equity release book. 

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