United Credit Union posts $1.78m group profit

Subiaco-based United Credit Union has announced a consolidated group profit of $1.78 million for the 2005-06 financial year, up from the $1.41 million earned the previous year.

The 26 per cent profit jump was in line with the mutual's expectations, with 95 per cent of total earnings coming from United's credit union business, while its settlements subsidiary contributed around $90,000.

However, United was still to reach the heights of the 2002-03 financial year, when the company recorded a net profit of $2.5 million.

The mutual moved to change its constitution in May this year to give members more power to voice their views in the case of any proposed demutualisation - including funding for legal advice and provision of a website.

United is of a similar size to StateWest Credit Society, which recently merged with former mutual Home Building Society Ltd. It is considerably smaller than another key industry rival, Police & Nurses Credit Society Ltd, which is the subject of a hostile takeover proposal from Home.

United improved its loan book in 2005-06 posting a 12 per cent increase to $615 million while overall assets under management grew to $697 million.

Acting United chief executive Stephanie Black said in an announcement that the mutual was now better positioned to support an increased number of members.

"We have completed our 3 year re-structuring program, creating a strong platform for future growth," she said.

"We remain focused on our members and will continue to improve our services to ensure we maintain our 97 per cent member satisfaction levels."