Quakes hit SBS Bank's profit and mortgage book

"The issue for us is, historically, 25% of our business has come from Christchurch," says SBS finance general manager Tim Loan.

Mortgage lending has fallen because people in Christchurch are getting earthquake-related payouts but aren't able to rebuild yet, Loan says

SBS's latest disclosure statement shows its mortgage book fell by $22.7 million to $1.78 billion in the three months ended September, the fourth successive quarter it has declined.

But on the positive side, SBS's liquidity has increased markedly. Its funds with financial institutions more than doubled to $105 million from $48.8 million six months earlier and investment securities jumped $45.5 million to $165.7 million in the same six months.