Bank posts net loan growth of 271%

by Madison Utley01 Mar 2019

An award-winning non-major bank has posted in its half year financial results, showing strong loan growth and solid profit.

Heritage Bank’s net loan growth for the six-months to 31 December 2018 was $164.85m, up 271.61% from the $44.36m posted for the comparable period in 2017. Loan approvals were up 20.31% from the previous year and valued at $963.53m.

CEO of Heritage Bank Peter Lock said, “Our business is strong, and we have also been able to provide customers with great value, great products and great service. That’s what a customer-owned bank is all about.

“We hope that the revelations at the royal commission of poor practices at the big banks will open people’s eyes to the value of the customer-owned option as a genuine alternative.”

Heritage reported an after-tax profit of $25.15m in the six months to 31 December 2018. This is down 4.26% from the previous year’s particularly strong figures, but shows a strong gain on the previous six month period, when after tax profits stood at $17.77m.

“The ongoing commitment to our customers and our branch network is reflected in our ability to attract consistent growth in retail deposits,” said Lock.

“We have also managed to secure a significant uplift in loan volumes, despite difficult market conditions characterised by falling property prices in certain geographies and a slow-down in credit growth across the banking sector.”

Lock credited the solid figures to the “disciplined expense management” and “effective capital allocation” of Heritage’s staff.

The half-year results position the bank to continue its efforts to upgrade the technology platforms made available to customers.

“We offer a proven banking model that’s safe and secure while also giving customers better value and a more satisfying banking experience,” said Chairman Kerry Betros, echoing Lock’s optimism of stretching forward into the next stage of strategic goals at Heritage.