Auswide grows profits by 11%

by Miklos Bolza21 Aug 2017
Second tier lender Auswide Bank has reported an underlying net profit after tax of $15.6m in FY17, an increase of 11.4% from the $14.0m the previous financial year.

The bank’s annual results, which were released on Friday (18 August), also showed an overall loan book that grew by 4.0% from $2.7bn to $2.8bn between FY16 and FY17.

Growth in Auswide’s loan book was achieved primarily in the second half of the financial year as the implementation of the new LendFast origination platform restricted growth in the first half.

Loan book distribution for the bank remains primarily in Central and Southeast Queensland although loan volumes fell in the state’s central region. Growth was reported in NSW and Victoria.
 
  Loan book (30 June 2017) Loan book (30 June 2016)
South East Queensland $1,035.5m $982.9m
Central Queensland $940.1m $976.9m
New South Wales $280.1m $235.6m
Victoria $221.3m $174.7m
Far North Queensland $153.1m $145.6m
Australia Other $82.9m $96.9m
Queensland Other $60.2m $53.8m

“Auswide Bank will continue to focus on growth of its home loan book with the LendFast loan system upgrade, Apply Online capability and process optimisation,” said the bank’s managing director Martin Barrett. “The growing consumer loan book contributes to the revenue of the bank with an increase in branch based capacity and growth in the MoneyPlace platform.”

Auswide took a controlling interest in peer to peer lender MoneyPlace in February 2017. Total investment into the acquisition sat at $14.0m at the end of FY17.

For arrears as of 30 June 2017, 0.73% of loans at Auswide were 30+ days past due while 0.39% were 90+ days past due. This equates to $20.1m in loans which were greater than 30 days past due – a decrease of $6.5m from 12 months beforehand. 

Arrears at Auswide remain below those found at regional banks around Australia, according to the latest Standard and Poor's Arrears Index (SPIN).

Related stories:

Non-major upgrades digital loan platform

Non-major launches new owner occupier deals

Another non-major raises investment rates

COMMENTS