01/10/2015 - 05:47

Teachers Mutual poised to grow

01/10/2015 - 05:47

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Teachers Mutual Bank had a 15.4 per cent uptick in net profit in the 12 months to June 30 after strong growth in deposits and its loan book.

Teachers Mutual Bank chief executive Steve James.

Teachers Mutual Bank had a 15.4 per cent uptick in net profit in the 12 months to June 30 after strong growth in deposits and its loan book.

That brought NPAT to $29.8 million, on a cost to income ratio of 67.6 per cent.

Retail deposits grew 11 per cent, while the home loan book grew 12.3 per cent.

Bank chief executive Steve James said the mutual had benefitted from a reputation for good customer service,

“I think you’re seeing the whole mutual banking industry starting to be a little bit more competitive against the four majors… we’ve certainly taken loans off them all year,” he said.

There was also major potential for growth after the merger with WA’s Unicredit, he said.

“There’s 40 universities across Australia.. we’ll probably in the next 6-12 months reinforce what Unicredit have been doing through the Unibank brand in WA,” he said.

“Then we’ll move it nationally.

“So we see great growth, and great growth in lending there.

“They’ll have a new product set (and) they’ve got credit cards for the first time.”

Mr James said the merger had been very successful, with both companies having a strong cultural fit.

Meanwhile, P&N Bank, Western Australia’s largest locally controlled mutual, also delivered a profit in the most recent financial year.

Chair Paul Gabb said that performance was despite a crowded market and continued economic uncertainty.

P&N’s income for the 12 month period was $117.5 million, and attributable profit $9.3 million.

Loans under management grew 6.8 per cent while deposits grew 4.1 per cent for the year.

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