26/08/2008 - 12:10

P&N Society earnings fall 2.5%

26/08/2008 - 12:10

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Despite a challenging year for the financial sector, Perth-based Police & Nurses Credit Society has reported a slight fall in group net profit to $19 million for the 2008 financial year.

P&N Society earnings fall 2.5%

Despite a challenging year for the financial sector, Perth-based Police & Nurses Credit Society has reported a slight fall in group net profit to $19 million for the 2008 financial year.

The net profit result is 2.5 per cent lower to $19.2 million compared to the previous year's $21.1 million.

Member deposits rose by over 12 per cent to $1.2 billion while total loans under management also increased by 12 per cent to over $2 billion.

Total group assets were up 14 per cent to $2.3 billion.

Provision for impairment to total group loans was up from 2007's 0.06 per cent to 0.24 per cent.

Chief executive Fred Huis said it had been a positive year for the company despite the challenges stemming from the fallout of the sub-prime crisis.

"We've largely absorbed the increased cost of funds in the current market and thereby minimised the passing on of those costs to our borrowers," Mr Huis said.

Mr Huis added that sales from the property development arm had stalled in line with the across the board deterioration in the real estate market caused by high interest rates.

He also added that the group would pass on the expected decrease in cash rates to members.

The Reserve Bank of Australia is expected to lower interest rates when it meets next week.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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