Travel closure hits united

UNITED Credit Union has reported a second successive fall in annual net profit following the closure of its loss-making travel subsidiary. United reported a net profit after tax of $1.3 million in the year to June 2005, down from $1.73 million in the previous financial year. The main contributor was the closure of the travel subsidiary “in the face of increasing losses”, which resulted in a one-off loss of $0.4 million. Putting aside the travel closure, United’s net profit still fell slightly to $1.64 million and contrasted with higher profits by its main non-bank competitors. United achieved solid lending growth, with loans under management increasing by 13 per cent to $551 million. The most rapid growth was in personal loans, up 18 per cent. United said 2005 was the second year in a three-year plan of restructuring program.