SBS's March quarter profit jumps despite ballooning bad loan charges

SBS's March quarter general disclosure statement (GDS) shows net profit for the three months rose 42% to $4.8 million even though charges against profit for impaired loans increased by $4.1 million in the quarter.

That brought its full-year net profit to $12.1 million, down 15.8% from the previous year, and its impairment charges for the year to $12.4 million, higher than the profit figure.

Net interest income grew 3.6% for the year to $61.1 million.

SBS, which became a registered bank on October 7 last year, grew its mortgage book by $12.9 million in the quarter and by $201.2 million in the year ended March to $1.64 billion, making it the second smallest mortgage lending bank ahead of HSBC.

SBS's share of residential mortgages lent by registered banks apparently dropped to 1.09% at March 31 from 1.1% at December 31.