bankmecu 2011/12 FINANCIAL PERFORMANCE
Highlights of the 2012 result
- Became Australia’s first customer owned bank on 1 September 2011.
- In its first year bankmecu delivered strong financial, customer satisfaction (94%) and staff engagement (88%) results.
- Net profit after tax (NPAT) of $27.02 million is consistent with $27.51 million in the prior period, allowing for the one-off costs associated with transitioning to a bank designation.
- This profit, which is owned by bankmecu customers, sees customer reserves grow 8.25% to $311.57 million.
- bankmecu continues to maintain very strong capital adequacy, at 18.50%.
- Canstar Cannex determined the overall bankmecu customer benefit was $20,143,3961.
- Loan growth of 4.49% reflects the current low credit growth environment. bankmecu maintained its responsible credit assessment criteria and did not forgo quality in an effort to increase lending.
- Retail deposits grew by 10.71% reflecting confidence in bankmecu’s responsible approach to banking and price competitiveness.
- bankmecu maintained its investment grade credit rating with Standard & Poor’s, at BBB+/Stable/A-2.
- During the first half of 2011/12 bankmecu appointed Damien Walsh as the Bank’s new Managing Director and two new independent Directors - Judith Downes and Greg Camm – were appointed to the board.
Summary of 2011-12 financial performance
| |
|
Jun-12 |
Jun-11 |
Change |
%Change |
|---|
| NPAT |
$m |
27.02 |
27.51 |
(0.49) |
(1.78%) |
| Net Interest Revenue |
$m |
70.75 |
70.57 |
0.18 |
0.26% |
| Net Interest Margin |
% |
2.59% |
2.79% |
(0.20%) |
(7.17%) |
| Cost to Income |
% |
57.68% |
57.90% |
(0.22%) |
(0.38%) |
| Assets |
$b |
2.837 |
2.625 |
0.212 |
8.08% |
| Retail Deposits |
$b |
2.471 |
2.232 |
0.239 |
10.71% |
| Loans |
$b |
2.211 |
2.116 |
0.095 |
4.49% |
| Reserves |
$m |
311.57 |
287.82 |
23.75 |
8.25% |
| Capital Adequacy |
% |
18.50% |
18.94% |
(0.44%) |
(2.32%) |
Commentary – Managing Director, Damien Walsh
bankmecu Managing Director, Damien Walsh, said the bank’s strong 2012 result reflects its responsible approach to customer owned banking and support of loyal customers.
“The last financial year has been a challenging one for all Banks. Lower credit growth and increased funding costs has impacted net interest margins. However, ongoing margin contraction is manageable.”
“A continued focus on cost management and productivity allowed the Bank to deliver a NPAT of $27.02m, which was marginally down on the prior years result but given the markets many challenges and bank transition costs, it is considered a solid result.”
“As bankmecu is a customer owned bank, its profits are reinvested back into developing the bank, expanding products and services and offering competitive pricing to both depositors and borrowers. We are a bank that exists to enhance the financial well-being of our customers through strong performance and shared value.”
“At the same time bankmecu maintained its investment of $1.1m into a range of social and environmental projects through its Community Investment Program.”
“bankmecu has a clear sense of purpose with a powerful story to tell about the strength and resilience of cooperative enterprise at a time when people across the globe are seeking a more responsible approach to capitalism.”
“An important role we can and will play as a customer owned bank is helping consumers make more informed decisions about their banking.”
“Our customers expect bankmecu to stick to its core business of strong, profitable and responsible banking that creates shared value. It’s a robust strategy and one which will continue to serve the bank and its customers well, long into the future.”
Business developments
- Completed agreements with Cuscal to be the bank’s primary provider of wholesale transactional payments products. Transition to Cuscal’s payment facilities has commenced.
- National Lending Centre and Call Centre hours extended to 8am – 8pm.
- New Bendigo Service Centre and refurbished regional office.
- New National Lending Centre in Morwell, Gippsland. bankmecu is a major employer in Gippsland with 103 staff.
- Further acquisition of two properties into the bankmecu Conservation Landbank. Based in the Western Wimmera region of Victoria these properties provide biodiversity and carbon offsets for the bank and its customers. Is situated in the Habitat 141 corridor and home to endangered species, such as the South-eastern Red-tailed Black-Cockatoo.
1. Source: bankmecu’s Cannex Valuation report June 2012. Canstar Cannex provides fact-based data and ratings to Australian consumers and financial institutions.
MEDIA
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