PSIS Claims Family Banking

Media Release

Embargoed until 12.30pm, 7 June 2007

PSIS Claims Family Banking

The last year has been an extremely busy one for PSIS, particularly with the launch of PSIS as the home of “family banking,” and the work that has gone into developing and delivering practical family-oriented products and services that help New Zealand families to prosper.

Announcing the end of year results, PSIS chief executive Girol Karacaoglu said he believed PSIS’ focus on families is a perfect fit with its co-operative values and is the most effective way for PSIS to connect with New Zealanders today.

“We’re different from other banks – we’re 100% owned by our customers, we focus only on personal banking and our sole aim is to provide a personalised service to our customers and their families. At PSIS our goal is to help families make the right financial choices,” Dr Karacaoglu said.

“In the 2006/07 year we’ve delivered a pre-tax profit of $10 million, which is slightly down on last year’s figure of $10.7million, but still at a satisfactory level. The slight dip in operating profit was predicted in light of the significant investments we’ve made to position PSIS for the future.

All key risk indicators (including loan losses and arrears) remained well within our own prudent targets, and are favourable to industry benchmarks. Our capital adequacy at 18.4 percent continues to be very strong, at more than double the minimum requirement set by the Reserve Bank for registered banks.”

Dr Karacaoglu said the success of these efforts has been reflected not only in PSIS’ repeatedly high ratings in customer satisfaction surveys, but also in the increases in its total deposit and loan accounts - up 9.9 percent and 11.8 percent respectively.

In the last year we’ve also: updated our youth accounts; helped families to consolidate their debt with fair interest rates and low fees; offered excellent, award-winning deposit products; offered more accessible and safer phone and Internet banking; and extended and refreshed our branch network,” Dr Karacaoglu said.

Key end-of-year results for 31 March, 2007 were:

- Capital adequacy (using the Reserve Bank formula) of 18.4%, well above the 8% minimum required for registered banks

- Total assets up 8.8% to $1.074b

- Deposits up 9.9% to $912m

- Loans up 11.8% to $925m

- Pre-tax operating profit $10m down from $10.7m

ENDS

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