SBS takes margin hit to keep mortgage rates down
The bank's bottom line slumped and its mortgage book also shrank slightly in the three months.
Chief financial officer Tim Loan says his bank had a "fantastic" year in the year ended March 31 so rather than worrying about bottom line profit it decided to return a "dividend" in the form of lower mortgage rates.
"We took that hit through our interest rate margin and that's an ongoing benefit that we're providing," Loan says. "We've got to be very conscious that our customers actually own us."
The bank's June quarter general disclosure statement (GDS) shows net profit slumped 55% to $1.6 million in the three months ended June 30, with about half the decline reflecting a one-off $2.2 million tax charge reflecting the government's tax changes.
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