Non-major lender ME Bank has lifted its half-year profit by 14%, driven by a new record in home loan settlements.
ME Bank announced an after-tax underlying net profit of $29.1 million for the six months ended 31 December 2014, a rise of 14% on the previous corresponding period.
ME Bank CEO, Jamie McPhee, said the half-year profit was driven by record home loan settlements.
“Profit growth was driven by a new record in home loan settlements − up 41% to $2.4 billion at the midpoint of the financial year compared to the previous corresponding period,” he said.
“We settled the highest amount of home loans in ME Bank’s history − $432 million − in December 2014.”
Broker originated loans increased by a massive 175%, with the third party channel generating $1.1 billion in home loan settlements for the half-year, up from $0.4 billion for the previous corresponding period.
McPhee said the non-major will continue to deliver solid results as it continues to invest in the bank’s nearly completed technology transformation program.
“ME Bank is looking forward to building on our strong half-year results with completion of our four-year technology transformation program due before the end of the fiscal year.
“This will increase our capabilities, efficiencies and will be a critical driver of growth and profitability.”
McPhee also welcomed the recommendations of the Financial Systems Inquiry, which will foster greater competition for Australia’s banking system.
“ME Bank together with the regional banks provided a strong submission that resonated with the Australian community; I’m pleased to see the Inquiry has agreed to address the regulatory, capital and funding anomalies that unfairly advantage Australia’s major banks.”