Good CSB result

Press, 27 May 1981, Page 29

Good CSB result

The extent of lending made possible by the excellent growth in depositors’ funds had been the highlight of the Canterbury Savings Bank's March 31 year, said the president, Dr D. J. Janus, at the annual meeting. Measured by the excess of deposits over withdrawals, depositors' funds increased a record $88.6 million to stand at $358.4M, a growth factor twice that of the previous year.

"The result in dollar terms was the highest for all trustee savings banks for the year. On the basis of percentage growth, it was the best of all banks for the third year in succession." he said.

“One of the happy results of our growth has been the ability to partially relax the criteria by which lending applications are judged." Mortgage advances of $63.7M exceeded those of the previous year by 69.4 per cent, and personal loan approvals more than doubled from $5.9M to $12.2M.

Total mortgage investments rose 27.1 per cent to $167.6M and personal loans $5.5M to SIOM.

“The majority of these funds were advanced to assist people to buy, build, or alter their homes.

"Because the whole of the lending package is geared to meet the demands of the consumer, the bank is prepared to offer terms and conditions which are extremely flexible," he said. To enhance its service in the lending field, the bank was decentralising more of the decision-making, giving greater efficiency and more authority to senior staff. A third growth area was in the number of new accounts. The 67,523 new accounts created another record and brought the total number of depositors' accounts to 456,528, Dr Janus said.

The net profit rose'l9.2 per cent to $1,860,672. after providing $309,727 more for tax at $1,567,740.

Although the prohl had increased in monetary terms it had slipped slightly, relative to funds employed, Dr Janus said.

However, the bank's management information systems enabled it to respond rapidly should this minor decline show signs of continuing.

One of the exciting developments of the year had been the introduction of Trusteebank Visa, he said.

"Raoid acceptance by the public of this highly secure credit card is shown by the thousands of cards we issued within the first few weeks of the initial launching.

"The issue rate continues io be maintained at a high level."

Other highlights of the year had been the construction of new premises for branches at. Bishopdale. Kaikoura, and Lyttelton. A new "Speedibahk" was opened in Shades Arcade. In the rural area a branch was opened at Darfield and construction has already begun on a new branch at'Amberley.

"This is a further indication of our faith in the support we can generate in rural areas.'

An adverse earthquake report on Nelson premises caused the bank to examine its opportunities there. Temporary premises- were located and demolition and reconstruction on the original site is shortly to commence. "Christchurch people were not surprised when during the year we announced that it was the bank's intention to build a new head office building.’’