Superbank grows mortgages, deposits and pares losses

The bank reported a $1.59 million net loss for the latest three months, down from the $3.89 million recorded in the year earlier quarter. The bank's losses since inception in February 2003 now total $37.07 million.

Its mortgage book grew 6.9%, or by $30.7 million, to $473.2 million between September and December. That was nearly double the growth in the overall mortgage lending by New Zealand banks, based on Reserve Bank figures, and lifted Superbank's share of the market to just over 0.4% from just under that figure. In December 2004, its mortgage book totalled $128.23 million.

Superbank's deposit book grew 4.8%, or by nearly $24 million, to $524 million in the three months. Its deposit book in December 2004 stood at $412.3 million.

Chief operating officer James Munro says the reduced losses primarily reflect the growth in the bank's mortgage book.

"We now have a lending book with significant income which helps."

Still, he says overall growth in the market has fallen away. "As we've gone into summer and the high season, I don't think the market's shown the lift of previous years," Munro says.

He's predicting that inner city apartment prices and house prices in provincial cities which have enjoyed rampant capital growth over the last three or four years are likely to come under pressure, although prices it city suburbs should hold up well.

While St George Bank is on record as reviewing its stake in Superbank, Munro says there's nothing to report on that front.