Trust Bank Canty has $6.6M interim profit

Press, 23 November 1988, Page 44

Trust Bank Canty has $6.6M interim profit

Trust Bank Canterbury yesterday announced an unaudited total profit of $6,668,000 in the half-year ended September 30. There are no comparative figures as it is the first time that the Christ-church-based bank has

announced a first half result. The bank’s total profit for the full year. ended March 31, was $23.3 million, and included extraordinary gains of $5.9M. The bank’s chairman, Mr John Palmer, said that the resun was satisfactory. The net result represented an annualised return of 21 per cent on shareholders’ funds, “which was above average in today’s climate.”

The period under review was also notable because the bank depositors’ funds reached $1 billion. Depositors’ funds rose SI33M, or 15 per cent, to SIOO9M. Loan advances in the same period were S22OM, an average of S37M a month.

The strong growth in deposits was caused by the products introduced in the last year and “the strength and security offered by Trust Bank Canterbury,” Mr Palmer said. The bank was nicely

balanced with high quality assets, prudent levels of liquidity, and a more than acceptable level of capital adequacy. “For the full year ending March 31, 1989, I expect the bank to comfortably exceed its 1988 operating profit of SI4M,” he said.

Revenue in the latest period was $87.1M and the cost of funds and expenses, $79.2M. This left a gross profit of S7.BM before gains on securities of $994,000. Tax took $2.6M, leaving a net profit, before extraordinaries, of $6.2M. There was an extraordinary gain of $464,000. Total shareholders’ funds were $62.9M, including S2BM in share capital.