Teachers Credit Union reaches $3 billion, interim results

Teachers Credit Union’s lending growth has pushed its assets above the $3 billion mark for the first time – despite the major banks' perceived stranglehold on mortgage business in Australia.

Assets have reached $3.04 billion, as at 30 April this year, a significant milestone for Australia’s third largest credit union, and represents year to date overall growth of 5.13%. Its secured loan business has grown by 11.57% in the year to date, compared to 8% for the whole of 2008/09.

“We’re in very good shape, and there’s no doubt that moderate growth in our loan portfolio has helped push us to the $3 billion landmark at this time,” said Steve James, CEO of Teachers Credit Union.

“Credit unions are well placed to fill the second tier gap as home lenders. Our strong service and low fee model is becoming increasingly popular with borrowers, as they seek alternatives to the major banks.”

All the other indicators are also showing healthy growth in the credit union’s interim figures, released today.

Net profit for the year to date is $20.2 million, up 41% on the same period last year. Retail and wholesale deposits are up 4.89% for the year to date.

Liquidity currently stands at 16.57%, and capital adequacy at 16.03%.

“Our strong profit for the year to date is due to our improved lending performance and reduction in operating costs, ” said Steve James.

One of Teachers Credit Union’s mortgage package products – the Smart Home Loan - was rated 5 stars by Canstar Cannex this year.

Media contact:

Gillian Tatt, Senior Public Relations Officer ph: 02 9735 9825 or 0448 259 942.