A global leader in community investment

  • 12 February 2015

    Teachers Mutual Bank—a global leader in community investment

    Teachers Mutual Bank is a global leader in community investment for the third year running, based on the results of the 2014 London Benchmarking Group Australia and the LBG Global Review 2014.

    Teachers Mutual Bank outperforms the LBG Au & NZ and LBG Global average by spending 4.55% of pre-tax profits on community investment—a total of $1.67m for FY 2013-14.

    “As a purpose-driven bank, putting profits back into the community is extremely important to us. We’re proud to be leading the way not just in Australia but globally. If all banks spent 4% of their profit in the community, the impact would be billions.” said Steve James, CEO of Teachers Mutual Bank.

    The LBG data shows that Teachers Mutual Bank invests 4.55% of profits back into the community, 12.6 times the financial services sector average for Au & NZ.

    The mutual’s community investment of 4.55% of pre-tax profit is;

    • 9.3 times the LBG Au & NZ average of 0.49%. 
    • 3.1 times the LBG Global Review average of 1.46%. 
    • 12.6 times the LBG Au & NZ financial services sector average of 0.36%. 

    Teachers Mutual Banks’ average contribution per full-time employee (FTE) is $3,867. This is;

    • 6 times the LBG Au & NZ finance sector average of $645.
    • 5.2 times the LBG Global average of $750.

    As one of the smaller companies in the LBG Au&NZ membership, Teachers Mutual Bank’s community investment for FY2013/14 of $1.67 million compares to the LBG Au&NZ average company contribution of $4.09 million.

    About the LBG

    The LBG is the global standard for measuring and benchmarking corporate community investment. 

    The LBG model provides a comprehensive and consistent set of measures to determine an organisation’s contribution to the community, including cash, time, in-kind donations, and management costs. There are 200+ corporate members worldwide, 164 companies participated in the Global and Au & NZ benchmarks, of which 46 were in Australia & New Zealand.

    44 financial services companies are in the LBG benchmarks, including ANZ, Axa, Barclays, Citi, Credit Suisse AG, ING, NAB.

     3 year trends

    2014 LBG results

    Average score

    Teachers Mutual Bank score

    Difference of TMB to the Benchmark score

    Global LBG Benchmark (164 companies reporting) (1)

    $ Contribution as a % of pre-tax profit (NPBT)

    1.46%

    4.55%

    3.1 times

    $ Contribution per employee

    $750

    $3,867

    5.2 times

    Contribution as % of total revenue

    0.17%

    0.69%

    4.1 times

    LBG Au&NZ Benchmark (46 companies reporting) (2)

    $ Contribution as a % of pre- tax profit (NPBT)

    0.49%

    4.55%

    9.3 times

    $ Contribution per employee

    $573

    $3,867

    6.7 times

    Contribution as % of total revenue

    0.10%

    0.69%

    6.9 times

    Total Community investment

    $188m

    $1.67m

    0.9% of total

    Average contribution per company

    $4.09m

    $1.67m

    41% of the average

    LBG Au&NZ Benchmark financial services  (7 companies reporting)

    $ Contribution as % of pre-tax profit (NPBT)

    0.36%

    4.55%

    12.6 times

    $ Contribution per employee

    $645

    $3,867

    6 times

    Contribution as % of total revenue

    0.12%

    0.69%

    5.8 times

    Average contribution per finance company

    $11.9m

    $1.67m

    16% of the average

    Total contribution by this sector

    $69.77m

    $1.67m

    $72m in total

    (1)    Of the 164 LBG Global members ( includes Au&NZ) 44 (26%) are financial services;

     

    Access Bank, Allianz UK, ANZ, Arab African International Bank, Australian Unity, Aviva, AXA, Banco Espirito Santo, Bank of America, Merrill Lynch,  Barclays, BBVA, Capital One, Citi, Credit Suisse AG, Deutsche Bank AG London, Friends Life, GE Money Bank, ING, Intesa San Paolo, Investec plc, IPF, Medibank, NAB Nationwide, Old Mutual Group, Provident Financial, Prudence Foundation, Prudential, PZU, Raiffeisen Bank , Rothschild, RSA Group, Santander, Schroders, Standard Chartered, Standard Life, Suncorp, Teachers Mutual Bank, The Royal Bank of Scotland Group, UBS, Unicredit, Zurich

    (2) Of the LBG Au&NZ total of 46 companies, 7 (15%) are financial services;

    ANZ, Australian Unity, Medibank, National Australia Bank, Suncorp Group, Toyota Financial Services, Teachers Mutual Bank

    Note: Data is taken from the official LBG report provided to Teachers Mutual Bank, and public  data from LBG International report, and the 2014 London Benchmarking Group Australia and New Zealand Annual Benchmark Review. 

    Data is from FY 2014.

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