Public Trust Reports Net Profit Of $3.4 Million

Public Trust Reports Net Profit Of $3.4 Million For Year, Up From $2.1 Million

Public Trust today announced an improved performance for the year ended 30 June 2007; a net profit of $3.4 million, up from $2.1 million in 2005/06.

Chief Executive Grenville Gaskell said, “This year’s annual result is significantly ahead of that achieved in 2005/06. While the result was boosted by material investment gains, it is pleasing to see a continued improvement in core business performance. Excluding investment gains, the pre-tax performance of core operations improved by $1.5 million, continuing the trend of the past three years.”

Equity increased to $45.5 million from $42.1 million with the result providing a 7.65% return on equity which was again up on the 5.07% achieved in the previous year.

Income before operating expenses increased 10% to $60.2 million, up from $54.7 million for 2005/06 year, with growth in the number of Wills and Enduring Powers of Attorney completed. More than 23,000 Wills were prepared during the year, up from 21,000 last year.

The number of Family Trusts administered also increased by 13%, and ongoing demand resulted in higher Personal Assist revenue. Personal Assist is a service that helps people remain independent by providing them with assistance with their financial and personal affairs.

Fee Protect, New Zealand’s largest and most comprehensive student fee protection service saw continued growth during the year and in February registered its 100,000th student. Fee Protect now covers students at over 360 private training establishments and has a market share in excess of 60%.

Public Trust has also seen continued growth in its charitable trusts business. It now manages over 400 charitable trusts and scholarships with a cumulative total of around $400 million in assets. These charitable trusts include the TG Macarthy Trust, the Smedley Farm Trust which has trained over 550 cadets since it was established in 1931, the JBS Dudding Trust, the Helen Royle Trust, the William Georgetti Trust which funds post-graduate scholarships and the Charles Plimmer Trust. They generate funding for interests as diverse as science, medicine, disability and agriculture.

Public Trust’s Corporate Trustee Services division which serves the corporate and business market was appointed as trustee to two KiwiSaver default provider schemes. …. / 2
Mr Gaskell noted that while Public Trust is best known as New Zealand’s largest provider of Wills and estate administration services, in fact it has many other dimensions that are less visible.

“Public Trust also has a social responsibility to help ensure New Zealanders aren’t prevented or precluded from access to key services relating to the management of their estates and personal affairs. These include acting on behalf of incapacitated persons to protect their personal property rights and the administration of the assets of missing, unknown or incapable owners,” Mr Gaskell said.

Pat Waite, Public Trust’s former Chief Executive retired in March after a six year association with the organisation. The Board and the Minister Responsible for Public Trust, the Hon Jim Anderton, acknowledged Mr Waite’s significant contribution to the organisation.

In October Peter Taylor, Chair of the Board will end his term after serving for six years as Public Trust’s Chair. Mr Gaskell noted that Mr Taylor has steered Public Trust through a challenging six year period to a point where there has been a sustained improvement in performance. He has overseen the development of a new strategy to significantly reinvest in the core business with the aim of ensuring future success by developing Public Trust’s capability to better meet the changing needs of our customers.

“At a time of increasing change, New Zealanders need a safe and professional trustee organisation to help protect their interests. As New Zealand’s largest and most enduring trustee organisation, Public Trust intends to further enhance the customer experience to ensure we are able to continue to play that role.” said Mr Gaskell.

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PUBLIC TRUST BACKGROUND INFORMATION

Key facts . Public Trust was established in 1873 (134 years ago) to provide New Zealanders with independent and reliable trustee services .

Public Trust's Maori name is Te Tari Tiaki Iwi, which translates as ‘the department that takes care of people’ .

Public Trust has 470 staff operating from 35 customer centres, throughout New Zealand. There are eight in the South Island and 27 in the North Island, including seven in the greater Auckland region .

Of all the staff working in the trustee industry in New Zealand, approximately half are employed by Public Trust .

Public Trust’s lawyers and advisors help more New Zealanders write their Will each year than anyone else .

Number of Wills held by Public Trust is over 320,000 .

Number of Wills prepared each year: between 20,000 – 25,000 . Public Trust looks after more estates than any other organisation – around 5,000 each year .

We manage over 400 charitable trusts with a cumulative total of around $360 million in assets; these charitable trusts generate funding for interests as diverse as science, medicine, disability and agriculture .

Public Trust manages more than 4,000 family trusts .

Thirty-three New Zealand farms are actively managed by Public Trust, including Smedley Station – New Zealand’s largest training farm .

Total mortgage lending to Public Trust customers equals around $238 million. Public Trust additionally administers portfolios of more than $250 million for other clients .

Public Trust administers approximately $3.3 billion in assets, including around $1.2 billion in investment funds .

Corporate Trustee Services is a division of Public Trust serving the corporate and business market. It has approximately NZ$15.1 billion under supervision .

Over 360 private training establishments have signed to Public Trust’s Fee Protect service. Since its launch, Fee Protect has safeguarded the fees of more than 128,000 students, totalling over $578 million.

How can Public Trust help? Whatever stage of life, Public Trust can help New Zealanders get their affairs in order. It helps people:

Make a Will and an Enduring Power of Attorney
Plan for a comfortable retirement
Buy their own home
Manage their affairs if they can’t manage alone
Get their finances and taxes sorted
Plan ahead for their funeral and final costs
Grow their wealth and protect it for the future
Carry out their last wishes
Provide for their family and their education
Look after their estate and beneficiaries

Who owns Public Trust? As a Crown Owned Entity, Public Trust is owned by New Zealanders. Its independence is guaranteed under the Public Trust Act 2001 which expressly requires it to act independently from direction by the Government in managing estates and trusts. Customer privacy and confidentiality is also assured. Public Trust is managed by a chief executive responsible to a board.

To contact Public Trust

For more information about Public Trust: Email: info@publictrust.co.nz Freecall Public Trust Customer Help team: 0800 371 471 Visit Public Trust’s website: www.publictrust.co.nz

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