SBS rules out finance company acquisitions

Chief executive Ross Smith said reports that the bank was eyeing up failed finance companies were exaggerated, and that savings institutions were more likely to be the target. The company doesn't have any targets in mind, but is prepared if the opportunity arises.

"We're in a position to look at opportunities as they arise, but there's nothing on the table at the moment," Smith told Good Returns.

The company expects things to start picking up in 2011, and Smith said "we don't have any major growth targets over the next 12 months".

Lenders' margins are expected to continue to remain tight as deposit-takers are forced to offer high term deposit interest rates to attract retail customers as they prepare for the central bank's liquidity requirements which come into effect next April.