Public Trust Delivers Improved Half-Year Performance

Public Trust Delivers Improved Half-Year Performance

Public Trust has achieved a net profit of $5.6 million for the six months to 31 December 2011 which was $5.9 million ahead of plan and compares with a net profit of $0.4 million for the same period last year.

'The increased interim profit was principally the result of the reversal of previously reported unrealised Common Fund investment losses and an improved operating performance in what has been a difficult economic environment,' Chairman Trevor Janes said.

The reversal of unrealised investment losses included a change in the valuation method for certain mortgage backed securities to reflect a more accurate assessment of market value.

The operating surplus was ahead of plan for the half year by $1.7 million. While total fee revenue increased by 5.5%, this was offset by a 24.2% reduction in Common Fund revenue reflecting a lower risk profile and competitive pressures.

Chief Executive Grenville Gaskell said Public Trust had produced a positive result which reflected a high level of commitment from employees.

'In addition to fee revenue growth, our operating costs were $1.7 million below plan for the half year and $1.1 million (3.5%) lower than the same period last year, and reflected tight control.

We are also encouraged by the increase in customer numbers and market share in our key target customer segments and core products of Wills and estates. In addition customer satisfaction continued to improve increasing to 79% and our tailored customer feedback channel, Voice of the Customer, tells us that 89% of customers rate their overall experience with Public Trust as excellent or very good,' said Mr Gaskell.

In August 2011, Moody's Investor Services re-affirmed Public Trust's issuer credit rating of Aa3 and a backed long-term deposit rating of Aaa for deposits held in the Common Fund.

Public Trust is also embarking on a programme of work to ensure compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act and has recently lodged applications for Public Trust and New Zealand Permanent Trustees Limited to be licensed as trustees and statutory supervisors under the Security Trustees and Statutory Supervisors Act.

'We are confident Public Trust will continue to improve its operational performance. Continuing to focus on improving the customer experience will ensure we are a sustainable business and increase shareholder value.' said Mr Gaskell

Other highlights from the half year review included:

¢ 12.3% increase in fee revenue per full time equivalent employee over the same period last year

¢ Corporate Trustee business has increased total funds under supervision to $35.8 billion

Notes:

Public Trust has been helping New Zealanders for over 138 years and is New Zealand's largest and most enduring trustee organisation. Public Trust has the experience and expertise to help New Zealanders grow and protect the important things in life, like family and property. For a full list of services visit www.publictrust.co.nz

ENDS

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