Very strong risk-adjusted capital ratio and earnings capacity to cover normalised losses Highly-liquid balance sheet relative to industry Plain vanilla products and services offered commensurate with enterprise risk management Geographically concentrated business profile in the Taranaki region of New Zealand Strategy to broaden market position may increase prospect of higher credit losses Deposit base is susceptible to competitive pressures from major banks, despite strong funding ratios Our ratings on TSB reflect the anchor stand-alone credit profile (SACP) for a bank operating only in New Zealand; plus TSB's "moderate" business position, "very strong" capital and earnings, "moderate" risk position, "average" funding, and "strong" liquidity. Our bank criteria use the BICRA economic risk and industry risk scores to determine a bank's anchor...
Companies mentioned in this report are: TSB Bank Ltd.
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