A non-major bank highlighted the “strong broker flows” evidenced over the 12 months to 30 June 2020 while sharing its full year result for the period.
Auswide Bank managing director Martin Barrett celebrated the group delivering on all its key financial targets, including the above system loan book growth.
“FY20 has been a year of outstanding growth in lending and customer deposits as well as profitability for Auswide Bank,” said Barrett.
“Our priority remained profitable loan book growth which increased by 4.3% or 1.5x system in a highly competitive market.”
At the close of the financial year, Auswide’s total loan book was valued at $3.25bn and was further diversified across regions, with New South Wales and Southeast Queensland being identified as representing significant growth opportunities.
The bank attributed the loan book growth to “strong broker flows”, inclusion in the government’s First Home Loan Deposit Scheme (FHLDS) and the success of Auswide’s other partnerships.
The group has been offering loans to eligible first home buyers under the FHLDS since 1 February 2020; to 30 June 2020, the scheme contributed to a 25.8 % increase in home loan approvals, as well as a 9.9% increase in home loan settlements.
COVID-19-related assistance aside, the group’s arrears of 0.39% remained at “historic lows” and, according to the bank, point to the sound credit quality of its loan book with 72% of the loans having an LVR of 80% or less.
As the economic impact of the pandemic began to be felt within Australia in March 2020, Auswide introduced a range of assistance packages for its customers including the deferral or reduction of their loan repayments.
“Nine percent of our loan book has been placed on assistance which is slightly lower than the industry average and reflects the concentration of our loan book in Queensland,” said Barrett.
“We will continue to work with our customers over the coming months to provide the appropriate levels of support.”