Strong year-end delivers to TSB’s national growth strategy

Tuesday 29 May

New Plymouth, New Zealand – TSB today reported profit before tax of $72.1 million for the 12 months to 31 March 2018.

The Bank’s deposits increased 9.5% during the same period and now sit at a record high of $6.7 billion.

The strong results show the Bank is delivering on its growth strategy to be a national bank that meets the needs of all New Zealanders. TSB is pleased to report the majority of the Bank’s business is now being generated outside of the Taranaki region while its local customer base remains steady. 

“These growth results meet our expectation to provide a customer-first banking experience to all of New Zealand,” says acting managing director Murray Bain. “We’ve grown to be the seventh-largest bank in the country and are proud to report that even in a difficult economic climate, our residential lending led our growth at nearly 2.5 times the market.”

TSB’s home lending was at 14% at the end of the financial year, well in excess of market growth at 5.8%.

“Such a strong result for the Bank is particularly positive when taken in consideration with some of the significant changes we faced last year,” says Murray. “The Bank launched its new brand in October, and following that success, the Bank’s CEO of nine years, Kevin Murphy, announced his retirement. Externally, there was a change of government and some uncertainty in the economic climate.” 

In keeping with its five-year strategy, TSB has continued to invest in its people and technology. Last year the Bank implemented a new Coaching programme that is mandatory for its people leaders. 

“This investment in people’s abilities to coach and mentor will have a positive flow-on into all areas of the business,” says Murray. “By investing in our people, we invest in the growth of the company.”

As part of its national growth strategy, TSB revealed its new brand on 2 October 2017. This was in response to research from customers and New Zealanders. After its launch, the Bank’s brand awareness increased by a significant 6.6% across New Zealand. The corresponding brand campaign entitled ‘Life changes. We’ll be there’ won two Gold Ingots at the Midas Awards in early 2018. The Midas Awards are international awards celebrating excellence in financial advertising and marketing on a global scale.

In the community, TSB supported Surf Life Saving Clubs across the country in the form of 11 financial grants totalling $115,000 to support training, equipment and maintenance.

TSB’s customer-first approach was recognised with its third-consecutive Consumer NZ People’s Choice Award in Banking. The Bank also won the 2018 Canstar Blue Overall Customer Satisfaction Award with 5-star ratings across all categories.

“As we continue to grow across the country, it is essential that our customers still feel they’re receiving the first-class service we promise. These awards provide fantastic recognition that this is the case, and that we are continuing to lead the industry when it comes to putting our customers first,” says Murray.

Founded in 1850, TSB has been independent and 100% New Zealand owned since inception. With its head office in New Plymouth, in the heart of beautiful Taranaki, the Bank has 25 locations across New Zealand. The Bank holds an A- credit rating as assigned by Fitch Rating.

You can access the full and summary annual reports online at: https://www.tsb.co.nz/about/financial-information