financial performance
Figure 4a highlights bankmecu’s financial performance in 2010/11. Further details of bankmecu’s financial performance are published in Chapter 11 ‘Statutory Financial Report’.
bankmecu's capital consists solely of reserves and the Company does not pay shareholder dividends. As a customer-owned organisation, bankmecu endeavours to pay a customer benefit through demonstrated competitive products and services.bankmecu also builds wealth on behalf of customer owners by retaining profits to build prudential capital.
Refer to Chapter 5 ‘Customers’ for bankmecu’s customer benefit valuation.
Figure 4a: Financial performance 2010/11
| Area |
Key performance indicator |
Industry average 2010/11 |
Target 2010/11 |
2010/11 |
2009/10 |
2008/09 |
Diff between 2009/10 & 2010/11 |
| Profitability |
Net profit before tax |
- |
$35.5m |
$37.9m |
$25.7m |
$25.5m |
47.36% |
| Return on average assets |
0.70% |
1.00% |
1.09% |
0.85% |
1.09% |
27.67% |
| Growth |
Increase in total assets |
14.70% |
9.13% |
7.85% |
31.68% |
21.97% |
-0.75% |
| Efficiency |
Asset to staff ratio |
- |
>$8m |
$8.5m |
$7.8m |
$7.8m |
10.00% |
| Cost to income ratio |
71.60% |
58.81% |
56.69% |
66.13% |
59.59% |
-14.28% |
| Soundness |
Return on equity ratio |
8.00% |
9.35% |
10.13% |
7.83% |
9.43% |
29.40% |
| Capital adequacy ratio |
15.40% |
12.00% |
18.94% |
19.16% |
20.25% |
-1.12% |
| Credit quality (delinquent loans to toal portfolio) |
- |
<0.45% |
0.51% |
0.46% |
0.18% |
11.41% |