Media Release Teachers Credit Union's bid to become a mutual bank Talk to us Phone us Email us Breadcrumbs Teachers Mutual Bank About us Media releases Media releases 2011 Media Release 12 October 2011 12 October 2011 Teachers Credit Union's bid to become a mutual bank The fifth pillar of banking is set to gain momentum as Teachers Credit Union, Australia’s third largest credit union today announced its bid to become a mutual bank, the largest credit union so far to do so. In a move designed to enhance its competitiveness against the major banks, the credit union is seeking to change its name to Teachers Mutual Bank. The credit union also released its annual results today, highlighting its strength and continued profit growth. Teachers Credit Union is recommending to its members to vote in favour of the mutual bank proposal at its upcoming AGM on 26 November. It must also gain approval from the regulator APRA (Australian Prudential Regulation Authority). “If the member vote is successful, the key changes for us will be our name, and our opportunity to access more cost-effective funding,” said Steve James, CEO of Teachers Credit Union. “However, the face of Australian banking will undergo a deeper transformation. Significant players in the mutual sector are taking the next step, and bringing their model of member owned banking to the forefront.” “This move has been inspired by the government’s banking reform package, a significant part of which includes building a new fifth pillar in the banking system, to put more competitive pressure on the big four banks. Mutual bank status will help member-owned banking become more competitive and a more powerful force in the banking sector.” “Teachers Credit Union’s member-owned banking values, competitiveness and unparalleled service have seen us top member satisfaction polls time and time again. Changing our name to Teachers Mutual Bank will more accurately reflect who we are and what we offer, in the public mind.” “Our status as a mutual is rock-solid – we have no plans whatsoever to demutualise. We’ll continue to live the ethos and principles upon which we were founded.” If the vote is successful, Teachers Mutual Bank will join bankmecu and QT Mutual Bank who have already achieved mutual bank status. 2010/11 Annual Results In its annual results released today, Teachers Credit Union’s asset base grew to $3.5 billion, growing by 14% on the previous year. Net profit after tax grew by 18.14% to $29.14 million. Despite a tougher home loan market in 2010/11, total loans were up 14.05%. Deposits also grew by this percentage – 14.05%. During 2010/11 liquidity was strong at 18.48%, and capital reserves were raised to $290 million. Capital adequacy ratio stood at 15.65% at the end of the financial year, significantly above many of the credit union’s major competitors. Teachers Credit Union consistently achieves member satisfaction levels of over 85% in its own polling, and has rated in the top 3 for financial institution customer satisfaction in numerous independent surveys. Becoming a mutual bank would “offer opportunities to diversify our funding through measured growth in wholesale deposits” said Steve James. Media Contact: Gillian Tatt Community Investment and PR Specialist P: 02 9735 9825 M: 0448 259 942 Back to top.