TSB Bank, 100% owned by the New Zealand
government, posted a pre-tax profit of NZ$74.3mn ($50.3mn) in the
12 months ended 31 March, a jump of 21% from a year earlier, as
strong consumer confidence buoyed results. 

The lender, formerly called Taranaki Savings
Bank, said customer deposits increased by NZ$549mn, or 16% to
NZ$4bn, while its total loan portfolio jumped by NZ$279mn to

‘Housing New Zealand’, a home ownership
initiative, “contributed significantly” to total loan portfolio
growth, increasing NZ$115mn to NZ$177.5mn in fiscal 2010. 

The results, the bank’s 23rd
consecutive year of record profit, were posted despite “a period of
considerable investor uncertainty. In the current environment, 100%
New Zealand-owned since 1850 is a strong motivator for customers,”
said Kevin Murphy, the bank’s chief executive. 

“At a time when many organisations have been
facing financial difficulty TSB Bank proudly stands out from the

But the bank added that intense competition
for both funding and lending pushed the interest margin to a record
low of 2.37%. 

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TSB said its capital adequacy ratio at
15.9% is the highest of any retail bank in New Zealand.