TSB holds mortgage market share as profit drops

TSB’s net profit for the three months ended December fell 6% to $9.2 million, including the $2.4 million unrealised losses, from $9.8 million in the same three months a year earlier, bring its nine-month result to $33.6 million, up 7.4%.

Its provisions for impaired loans rose by $110,000 over the quarter, bringing the nine months’ provisions to $1.36 million. The bank had $19.4 million in past due assets at December 31, up from $5.3 million a year earlier while impaired assets rose from nil to $1.9 million.

Its mortgage book grew by $35.9 million to $1.87 billion in the three months. Using Reserve Bank figures as a proxy for the market, its share remained steady at 1.2%.

Past due residential mortgages rose slightly to $4.5 million at December 31 from $4.2 million at September 30. Its loans with loan-to-valuation ratios above 90% rose slightly from $59.5 million at September 30 to $64.1 million at December 31 while those with LVRs between 80% and 90% rose from $119.2 million to $124.2 million.