Customer owned banks post strong financial results

27 September 2016

Bank Australia’s 2016 financial results show strong profitable growth with a net profit after tax of $22.6 million and overall asset growth of 13% taking the bank’s assets to more than $4 billion.

According to Managing Director Damien Walsh, the bank’s deliberate decision to forgo a portion of profit this year to focus on investing in the bank’s customer owned brand and technology has delivered strong business growth.

“We achieved deposit and loan growth both well above system which is pleasing in the current low interest rate and competitive environment,” Walsh said.

Meanwhile another Melbourne based customer owned bank and BCCM member, Defence Bank posted a 14.4 per cent rise  in net profit to $10 million on the back of record growth in home loans.

According to Jon Linehan, chief executive of Defence Bank, the latest result marked the fifth year the lender has reported double-digit growth in home loans and put the strong performance down to the bank’s ability to meet the unique demands of its members.

Commenting on the bank’s earnings growth for the next 12 months, Linehan said the current level of growth is sustainable – since the mutual’s growth strategy and cost control will offset a reduction in interest rates.