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An increase in retail deposits and continued solid growth in home loans have resulted in another robust performance by Teachers Mutual Bank in 2015.
The bank achieved greater deposit growth than the rest of the industry, with an almost 11% increase in retail deposits in 2015. Overall, deposits grew by almost $400 million to just under $4 billion. $83 million of this growth was in term deposits, and $94 million in the bank’s unique offset product.
The bank also continues the year on year growth trajectory in its home loan book, increasing by 12.32% to $3.8 billion.
Broker-generated loans contribute significantly to the home loan performance. The bank’s presence in the broker channel is now maturing, with over 1000 brokers accredited to sell its home loans.
“We took a strategic decision to grow deposits, to help support the strong demand for, and growth in our loan book. We achieved this while maintaining good profitability,” said Steve James, CEO of Teachers Mutual Bank.
Net profit after tax (NPAT) was $29.78 million, up a healthy 15.4% from 2014. The asset base grew by 10.6% to $4.86 billion.
Cost to income ratio fell to 67.61%, a good result in the mutual context.
The mutual bank – one of Australia’s largest - merged with the former Unicredit (now Unibank) in August of this year, and the bulk of the merger costs were factored in to the FY 2015 results.
Capital adequacy ratio remained strong at 15.74% and well beyond prudential requirements, with capital reserves continuing their year on year increase to $391 million.
“We will also continue to work on expanding and diversifying our sources of liquidity and capital via the wholesale market in 2016,” said Steve James.
“Our inaugural medium term note issuance (which includes non-fossil fuel investment criteria) to the wholesale funding sector this year was very successful, and will provide a stable source of funding for the next three years.”
The Teachers Mutual Bank Annual Report can be viewed here.
Gillian Tatt, Corporate Affairs Manager on 02 9735 9825.