SBS rules out finance company acquisitions
SBS, the bank that grew out of the Southland Building Society, has ruled out mopping up any failed finance companies as it looks to take advantage of any acquisition opportunities in the coming year.
Tuesday, October 13th 2009, 6:00AM
by Paul McBeth
Chief executive Ross Smith said reports that the bank was eyeing up failed finance companies were exaggerated, and that savings institutions were more likely to be the target. The company doesn't have any targets in mind, but is prepared if the opportunity arises.
"We're in a position to look at opportunities as they arise, but there's nothing on the table at the moment," Smith told Good Returns.
The company expects things to start picking up in 2011, and Smith said "we don't have any major growth targets over the next 12 months".
Lenders' margins are expected to continue to remain tight as deposit-takers are forced to offer high term deposit interest rates to attract retail customers as they prepare for the central bank's liquidity requirements which come into effect next April.
Still, he expects some pick-up in SBS's margins in the coming months as some high-yield investments come to maturity.
"We still have a number of investments coming to maturity from the 8% range - once they come through the pressure should fall off," he said.
Paul is a staff writer for Good Returns based in Wellington.
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