TSB Lifts Profit And Builds Momentum For Digital Investment
TSB Bank has reported another year of strong financial performance and strategic progress.
The Bank delivered a net profit before tax of $57.6 million for the year ending 31 March 2025, up $6.7 million on the previous year. In the 2025 financial year $15m in dividends have been declared to shareholder Toi Foundation Holdings Limited (the investment management entity of philanthropic organisation Toi Foundation), an increase on the $10m declared in the prior financial year.
Performance was underpinned by a $7.8 million increase in net operating income and a 1.7% reduction in operating costs. Lending and deposit growth remained strong, with commercial lending up 29% and deposits increasing by 2%. TSB also maintained strong asset quality, with non-performing loans at just 0.5%, below the industry average of 0.7%.
Chair Mark Darrow says the results reflect the Bank's focus on simplifying operations to pave the way for accelerated investment in digital capability.
'TSB is now in a strong position to evolve into a digital-first bank that delivers on the expectations of modern consumers and businesses, while staying true to our customer-first values and high-quality service,' Darrow says.
'We're laying the foundations for long-term growth by investing in the right technologies, talent and tools. Our goal is to build a bank that earns trust through great service today and innovation for tomorrow - and to do so in a way that reflects our deep community roots.'
Chief Executive Officer Kerry Boielle says TSB's progress is a testament to the hard mahi of our people and our ongoing commitment to delivering more for our customers and communities.
'We've made great progress this year in strengthening our systems and products, so in the year ahead, people can expect TSB to step up and offer more for everyday New Zealanders and small to medium sized businesses.
'With our community background we know we can provide a fantastic level of care in this space, so that's where we're focused on improving our offering.'
TSB was named Canstar's Bank of the Year for Credit Cards for the third consecutive year in 2025 - recognition of its focus on delivering customer value. The Bank also continued to invest in customer protection, enhancing fraud prevention systems including rolling out Confirmation of Payee.
Looking ahead, Boielle says regulatory reform is needed to support improved competition and innovation across the sector.
'While regulation is essential to a safe banking system, some requirements are disproportionate and hinder innovation.
'We're calling on policymakers to introduce true proportionality in banking legislation so that New Zealand-owned banks like TSB can invest more rapidly in the products and services our customers need.'
With TSB celebrating its 175th anniversary in 2025, Darrow says the Bank is focused on future growth.
'We're incredibly proud of our legacy and excited about what lies ahead. Our ambition is to become New Zealand's digital bank of choice – one that continues to put people first for generations to come.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
5 hours ago
- RNZ News
Woman had to beg to pay hefty Watercare bill in instalments after issue with faulty smart meter
The faulty meters means some customers had been getting zero use bills for months. Photo: Nunnicha Supagrit A Watercare customer says she had to beg to pay off a huge catch-up bill in instalments after a faulty smart meter gave her zero-use bills for months. The issue stemmed from Watercare's smart meters, which it told Checkpoint more than 13,000 of were not working . The water supplier had known about problems with one type of smart meter since October last year, and the fault had so far affected about one third of the 40,000 meters installed since 2022. Hamideh, from West Auckland's Henderson, told Checkpoint, she had complained to Watercare more than once about an issue with her smart meter which began in November last year, but while waiting for the issue to be fixed she was sent a bill to the amount of $219. "It was shocking - I was not prepared for it." She had lost her job a few months ago and knew she wouldn't be able to afford to pay off the bill in one go. "I called Watercare and asked to pay in instalments and they said no, not possible. I explained I lost my job and was told that I should have saved for it." After about 25 minutes on the phone, Hamideh said it was accepted she could pay in instalments. "But there's still no reading on my water meter. I was quite pissed off when she told me I had to save for it. "They told me the meter just stopped syncing data... they didn't communicate the problem with their customers. It's been seven months and no solution." Watercare chief financial officer Angela Neeson told Checkpoint she was really sorry to hear about Hamideh's experience and said it needed resolving. "That it's taken seven months to resolve does sound unusual." Neeson said when Watercare realised there was an issue with the smart meters processes were put in place to identify when the meters started to become faulty. "The process does take a couple of months because the first month of a zero read could just be someone on holiday or out of the house but after the second month we move the customer to a manual read," she said. She acknowledged there was nothing on the Watercare website about the faulty meters and said Watercare had "been focused on liasing with the customers". "We watch for month two to identify when there is potentially a faulty meter." Watercare had now stopped installing that particular meter, Neeson confirmed but she did not give a timeline on how long it would take to replace the faulty ones. "We will always look and how we can do better and we're considering whether we don't wait that one month after a zero read to investigate so that it shortens that period for customers. "We are always looking at how we can do things better". Neeson confirmed water bills would increase 7.2 percent at the start of July which she said reflected the cost of running the operations and becoming financially independent. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
7 hours ago
- Scoop
Are Coffee Prices Heading Down? Don't Hold Your Breath
Global coffee prices might have fallen but there's a warning that it might not mean you pay any less in your local cafe. RaboResearch data shows arabica coffee prices dropped 17 percent in the last three months and robusta, often used to make instant coffee, dropped 30 percent. It said this was due to improved production forecasts and diminishing demand. Global coffee demand is expected to drop 0.5 percent in 2025. A surplus of 1.4 million bags is projected for the 2025/26 year, primarily in arabicas. RaboResearch then also forecasts a much bigger surplus the following year, particularly if Brazilian weather is normal. Infometrics chief executive Brad Olsen said the price declines were encouraging but did not necessarily mean New Zealanders would see coffee prices fall. "Given the full increase in global coffee prices hasn't fully hit Kiwis' morning caffeine hit yet there might not be real relief for New Zealand coffee prices." He said while World Bank data showed arabica coffee prices were down 3.1 percent in May from the peak in February they were still 2.3 times the May 2019 price. Robusta was down 9.8 percent from the peak but the same margin up on 2019. "Stats NZ data shows that instant coffee prices in May 2025 were 14 percent higher than a year ago, and only 36 percent higher than in 2019 - so less than a tenth of global coffee price pressure has hit directly. With not as much of the original hit from coffee prices hitting local prices, we might not see a lot of relief. If anything, forward ordering of coffee means we might still see further price increases trickle through as beans are imported after being ordered before recent price falls. "Café operators have clearly been trying to absorb as much of coffee price rises as they can to limit how many people might stop buying at higher prices. Stats NZ data also shows takeaway coffee prices are up just 3.8 percent per year in May, despite the large increases in both coffee and dairy prices, suggesting cafes are taking the hit on their margins rather than pass price increases on as much." Café and roastery owner Richard Corney, of Flight Coffee and The Hangar, has been warning that retail coffee prices are unsustainably low. He said if prices had kept up with the increase in café costs in recent years, a flat white would be selling for $7.
RNZ News
7 hours ago
- RNZ News
Music licenser chasing up hundreds of businesses for playing music in the workplace
All commercial businesses, including offices and trade sites, are required to pay a licencing fee, with any music played for non-personal use. (File photo) Photo: Eric Nopanen / Unsplash A music licensing organisation is chasing up hundreds of businesses a week asking them to pay-up for the tunes they are using, so that artists get what they are owed. OneMusic licences certain music for use in commerical settings like pubs, club, offices, hairdressers, gym and factories, nearly anything outside of personal use. Charges vary, playing the radio in a factory with 72 workers would cost $49 a month for licence, a gym with 500 members would pay about $104 dollars a month. OneMusic Director, Greer Davies told Checkpoint music licencing had been around for a while, and the company saw a huge lack of awareness from businesses. "It comes down to a lack of education and so our team are continually contacting businesses to educate them about the use of music and their legal requirements for music creators." "OneMusic's been around for 13 years but music licencing existed prior to that as well, and it's an it's an education that we need to take people on." Davies said they were speaking to hundreds of different businesses a week, aiming to educate them about the licencing programme. One of those business owners was a Hawkes Bay florist who told Checkpoint she was called by OneMusic to see if she was paying licence fees , which she wasn't. Francie Croy said she listened to the radio on her phone out the back of her Waipukurau shop, but the music licensing organisation told her she must buy a licence or turn the music off. "No one out front of the shop can hear it, but she said to me that I would still have a licence to have to do that because sometimes Newstalk ZB plays music." She said after the phone call she was sent another email from OneMusic. "It was a certificate thing, saying this is confirmation that you have advised us that you do not play music in your business and will not play music represented by this place. "It includes television, radio stations, apps, digital music services, Spotify, Apple, YouTube, CD's, DVD's, Blu-ray, vinyl and cassette tapes, and the list goes on." Croy said she had no idea that being charged for playing music at her business was even a possibility. All commercial businesses, including offices and trade sites, were required to pay the licencing fee, with any music played for non-personal use. Although the licence covered a large variety of circumstances, Davies said they had a specific focus on a group of businesses. "Our current focus is educating business owners across hospitality, retail, service providers and exercise." Croy said she was shocked by the request from OneMusic, which a few other businesses in the area also received. She said it seemed unlikely that someone from OneMusic had visited her small store in Waipukurau, and thought they must be sending random emails. Davies said the company had representatives visiting shops to vet whether they were playing music unlicensed. "These representatives carry out a range of tasks for us, some verifying music that's being played and identified the source of that music. They also check new businesses that may have opened in vacant locations that we've been unable to reach." She said the fees from the licence go towards artists to ensure they are paid for their music and OneMusic was partnered with APRA AMCOS and Recorded Music NZ, who pass the costs onto the artists. "Each of those organisations distribute the revenue that OneMusic earns on their behalf, but about 85 cents every dollar is distributed." Davies said for those that fail to pay for a licence there could be consequences, often resulting in fines. "Generally a business owner will understand the legal obligation and obtain the relevant licence, but reluctantly, if they don't, we will pursue and potentially end up in court." "The most recent court cases were in 2018 and 2019, and the damages were around about $15,000, $18,000." The Ministry of Business Innovation and Employment said OneMusic licensed copyright works and MBIE did not have oversight of the scheme. It said businesses that play music for their staff and/or customers need a licence and the licensing fees paid are distributed to producers and recording artists. "If a business does not wish to pay any licensing fee to play music, they should not play music. To do so without a licence means the copyright owner may sue the business and award damages. "A business who wishes to dispute the terms and conditions of the scheme may make an application to the Copyright Tribunal. If the Tribunal determines that the licensing scheme is unfair it may order changes," it said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
