Half-yearly results strong for SBS Group

SBS Group has reported strong half-yearly results with a 35 per cent increase in operating profits for same period last year.

SBS Group, which includes subsidiaries Finance Now, FANZ and SBS Insurance, released their half-yearly results on Friday, reporting a half-year operating profit of $32.5 million, up $8.5m from the same period last year.

In June, the Southland-based banking group reported an operating surplus of $55.2m for the year ending March 2021.

Lending advances were reported to be up $93m since March to $4.13 billion.

SBS chief financial officer Tim Loan said the half year results showed ‘‘strong momentum as an organisation’’.

The SBS FirstHome Combo package launched in August has generated ‘‘extremely strong demand’’ in all geographical regions despite the most recent LVR restrictions.

The organisation will be looking to reinvest $7m a year into the product.

SBS general manager of member experience Mark McLean, who will be moving into the chief executive position following Shawn Drylie’s departure in December, said ‘‘we’ve seen the growth through a combination of both Kāinga Ora assisted loans which require only a five per cent deposit as well as applications from new homebuyers who don’t meet the Kā inga Ora criteria and need a higher deposit.’’

McLean said the SBS Unwind Reverse Equity Mortgage had been a real game-changer for many of its older members who were not ready to leave their property but did not have the cash they needed to enjoy their retirement.

‘‘Our Reverse Equity Mortgage allows them to stay in the property and borrow against its value, so the property is really working for them.’’