TSB's mortgage book grows but profitability flat

TSB's March quarter disclosure statement and annual report shows its mortgage book grew $46.3 million to $2.36 billion in the quarter and by $180.2 million in the year ended March.

Its net profit for the quarter grew by 6% to $10.2 million, although that mostly reflected a lower tax charge due to the corporate tax rate falling to 28% and the removal of depreciation on buildings. Profit for the year was down 22.1% to $39.8 million, mostly because of a sharp drop in derivative financial interest income.

Excluding the latter, net interest income rose 1.2% to $21.6 million in the quarter and was down 3% to $86.2 million for the year.

Charges against profit for bad loans jumped in the quarter to $1.5 million from $0.9 million although they dropped to $3.3 million for the year from $4.5 million the previous year.