In spite of an increase in loan impairments and costs associated with clients refixing mortgages, an annual profit has been made by Southland Building Society Bank.

In the month of October last year, the building society became a bank, with the aim to distance itself from the troubles of the financial sector.

This year during March, profit dropped by 13% to $12 million, compared with the previous year.

A $3 million rise was booked by SBS Bank in provisions for credit impairment, to $12.4 million. Meanwhile, an increase in costs associated with a rapid decline in interest rates was seen -from $4.7 million to $6 million.
 
According to Chief Executive Ross Smith, part of that cost resulted from clients breaking their mortgage contracts.

An increase was seen in depositors’ funds by $200 million, leading to a $68 million rise in lending, to $2.4 billion.