Christchurch based building society group CBS Canterbury has decided to issue bonus shares rather than pay a dividend as it strives to build up its capital ahead of an expected margin squeeze. CBS Canterbury is a combination of Ashburton Building Society, the Sydenham Money Club and the Loan and Building Society (LBS). Its latest merger with LBS was in February and the institution is NZX listed with a government guarantee. CBS Canterbury reported a profit for the six months to September 30 of NZ$1.05 million, down 18.6% on the previous year. Total loans fell during the six months to NZ$434.5 million from NZ$449.1 million, while deposits rose to NZ$510.6 million from NZ$506.2 million six months earlier. Full details of the result are here.
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