CBS Canterbury told its latest Annual General Meeting that it needed to control its cost base after an "unacceptable increase" in its cost to income ratio. In a presentation to the AGM on Wednesday, CBS said a realistic target for its cost to income ratio was 50-55% maximum, and is forecasting the ratio to fall back toward that range in 2011/2012 after rising to over 70% in 2009. Forecasts are for it to keep rising in the current year to around 80% before falling away sharply in 2011. CBS said that recent mergers had resulted in cost retention and asset rationalisation. CBS merged with the Loan and Building Society in February 2008. In June, CBS announced it had made a NZ$3.48 million loss in the year to March 31, 2009 after allowing for goodwill impairment charges of NZ$4.15 million. This was down from a profit of NZ$0.88 million in the year to March 31, 2008. Here is the slide show presentation made by CBS Canterbury at the AGM on July 22, 2009: 07 22 09 - Presentation CBS
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.