Ticker:  CBS
Website: www.abscanterbury.co.nz
CEO: David Street
Chairman: Graham Russell Kennedy
Annual meeting date: Ashburton, 27 July 2006

Shares.net.nz comment

CBS Canterbury was formed this year early from a merger of the SMC Building Society and the previously AX listed former Ashburton Building Society ...

PE comment
CBS has 6,546,620 ordinary shares on issue @ $4 giving a market cap of $26.2 million.
Companies such as CBS trade on a PE of …

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CBS’s share price has …

Company comments on its latest result

The newly-merged business has given CBS Canterbury a strong footprint in Canterbury, with three branches in Ashburton, Riccarton and Sydenham, and it has increased the client base considerably.

“We are now operating in a new era in which the business will benefit from the increased competitiveness and market share that was envisaged when shareholders overwhelmingly supported the merger in April this year,” chairman Graham Kennedy said.

“The increased profile will also help control our cost of funds," he added. "From the perspective of our balance sheet, it has already resulted in increased post-balance date financial strength.”
Chief executive David Street said: “Competition has been intense during the past 12 months, and this has continued to place pressure on our interest rate margins.”

CBS directors believe market conditions will remain very competitive in 2006-07 and “asset quality will prove to be important,” said Mr Kennedy.

“With the strong growth in population in Canterbury, and particular Mid Canterbury, we expect our lending activities to grow at a modest but satisfactory rate.”

Latest financial result (full year)

Recent milestones

March 2006  The merger of Ashburton Building Society and Christchurch-based SMC Building Society was approved by special resolution of their respective shareholders and members attending separate special meetings held in Canterbury.
 
January 2006 A “stronger regional identity” was unveiled by the Ashburton Building Society with a change of its trading name from the former ABS Canterbury to CBS Canterbury. “Our banking services are diversified between our traditional base in the Ashburton district and metropolitan Christchurch and the new name will underscore our growth opportunities in the Canterbury region,” said chairman Graham Kennedy, chairman of the society.

December 2005 The terms of a merger were conditionally agreed between the boards of directors of ABS Canterbury and the SMC Building Society. They are among the oldest financial institutions in Canterbury at 130 years and 123 years respectively. A merger proposal was to be placed before their respective members for approval early in the New Year.

Company activities

Operating since 1875, CBS Canterbury provides financial and banking services to individuals, groups and organisations, and farming and commercial businesses. The main emphasis of Mortgage lending and Investment finance has been complimented with a wide range of general accounts.