Our solid performance for 2008/09

Teachers Credit Union has strongly weathered the GFC storms, with only a modest drop in profit this year coming off the back of a record year for growth in 2007/08.

Like many other financial institutions, our margins were squeezed in 2008/09, but there are strong signs from our current business activity that a recovery is already under way. Despite the GFC, impairment costs net of recoveries for 2008/09 were only 0.06% of average assets, down on 0.07% last year and lower than the 5 year average of 0.08%.

The net profit of the credit union for the year was $17.6 million, representing a 12.3% drop from the previous year. Our merger with The TAFE & Community Credit Union Ltd contributed a further $2.5 million to the total increase in member equity.

There was solid balance sheet growth of 20%, with investors’ flight to quality bringing a 32% increase in retail deposits. The subdued performance of the housing sector and dampened consumer confidence was reflected in a modest growth in loans of 8%.

The year ended with our liquidity at 20% - higher than the previous year – and capital adequacy at 15.5%.

CANSTAR CANNEX again measured the value Teachers Credit Union provides to members, and found that for 2009 our members were on average $229 p.a. better off compared to the major banks.

Corporate social responsibility remained a key focus. We continued to support the education community across Australia, this year to the tune of just under half a million dollars in sponsorships and community programs.

Summing up, Teachers Credit Union CEO Steve James said, “Following a turbulent year, the credit union remains in a strong capital position, with very healthy liquidity, and with a profitable business model that continues to deliver strong member value.”

For further information see our Reports page.

Media contact:

Gillian Tatt
Senior PR
Email: gtatt@teacherscreditunion.com.au
Ph: 02 9735 9825
Mobile: 0448 259 942.