Co-Operative Bank profit falls on one-offs

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Profit fell and customer numbers dipped in the year to March but the Co-Operative Bank is confident about its future now it has been rebranded and is licensed as a bank.

Profit after tax was $5.6 million, down from $7.1m a year earlier, the bank announced today. One of the main reasons for the drop was the $1.45m expense for getting itself licensed as a bank and rebranding.

In October, it changed its name to The Co-Operative Bank, from its former name, the PSIS, which harked back to earlier days catering to the public service. It opened membership to the public in 1995.

Today it also announced its new chief executive would be ex-Westpac acting CEO Bruce McLachlan, replacing Girol Karacaoglu who left to join the Treasury.

Chairman Steven Fyfe said the past year had been momentous for the bank.

"We've achieved our banking licence, received a credit rating upgrade, changed our name and won the inaugural 2011 CANSTAR Blue Customer Satisfaction award for banking, receiving the maximum 5 stars in every category," Fyfe said.

While its customer numbers fell 2000 to 250,000, deposits were up 4 per cent or $51m and lending rose by $43m to $1.21b.

"Although the bank's pre-tax operating profit of $6.6 million is down on the previous year, we're pleased with the result, as the reduction in profit is primarily due to the one-off costs associated with bank registration and re-branding as The Co-operative Bank."

Despite earlier indications that the co-operative, which gives each of its members one non-tradable share in the company, would be paying rebates based on its profit, there will be no payouts from the 2012 financial year.

- © Fairfax NZ News