Key Facts for Investors - Christchurch Earthquake
SBS Bank is a New Zealand-owned bank fully regulated and monitored by the Reserve Bank of New Zealand
SBS Bank has been trading successfully since 1869 including through the Great Depression, the Napier Earthquake (1931), two World Wars and the Global Financial Crisis
SBS Bank is one of the few financial institutions to remain profitable throughout the Global Financial Crisis
SBS Bank maintains capital and liquidity ratios well in excess of RBNZ minimums and ahead of most other banks in NZ
SBS Bank has comprehensive insurance in place with external insurers covering material damage, earthquakes and business interruption
All properties over which SBS Bank has mortgage security are required to have full replacement insurance as a condition of their mortgage agreement
EQC covers up to $115,000 of the initial loss to residential property with private insurance companies covering the remaining loss
SBS Bank sells Fire and General Insurance on an Agency basis only and has no underwriting liability on Canterbury properties
SBS Bank requires first mortgage security on all property loans (representing 95% of lending advances) and does not have any sub-prime lending
SBS Bank has only minimal loan exposure to commercial property in Christchurch, most of which appears unaffected and we do not anticipate any abnormal losses from this portfolio as a result of the earthquake
Whilst SBS Bank expects to incur some losses on property as a result of the Earthquake, we do not anticipate this will have a material impact on profitability
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