BNK Banking Corporation has grown its lending book by 55% to $1.3 billion year-on-year, while “record deposit growth” has seen its total deposits balloon by 65% to $1.37 billion.
In a trading update for Q3 FY23, BNK said its loan book growth since Q3 FY22 reflected continued momentum in its deposit-funded loan book and Bendigo and Adelaide Bank’s (BEN) warehouse.
BNK CEO Allan Savins (pictured above) said with the addition of a $150 million portfolio of higher margin residential mortgages purchased from Goldman Sachs in March 2023, it had already exceeded its target of $100 million of high margin lending in FY23 and had achieved this in a capital- efficient manner.
“BNK also settled a further $42 million in specialist warehouse loans during the quarter through BNK’s alliance with Goldman Sachs, a decrease of 57% from $98m in Q3FY22,” Savins said.
“BNK’s direct loan to deposit ratio of 79% demonstrates our continued ability to raise deposits to fund our strategic growth, and we remain well capitalised, with a capital adequacy ratio of 23.1% at the end of March.”
Savins, who became CEO of BNK in 2021, said the 65% total deposit growth to $1.37bn since Q3 FY22 was a testament to the strength and diversity of the bank’s distribution network.
“We saw a 16% increase in deposits quarter-on-quarter, with term deposits now making up 46% of our total deposits. The strong growth we have seen in our deposit base helps to reduce the risk in our loan book,” he said.
“The robust growth in our deposits reflects the popularity of our deposit program. It strengthens our liquidity position and increases our ability to efficiently fund operations in a volatile environment.
“It is also a reflection of our ability to adapt and continue to attract and retain our customers in a changing interest rate environment.
BNK reported a total lending portfolio by funder of $2.7bn, an increase of 3% on Q3 FY22, while organic and inorganic lending settlements reached $265m, an increase of 8% from Q3 FY22.
BNK recently welcomed Firstmac as a substantial shareholder, after it increased its stake in BNK from 1.49% to 19.9% as shareholders John Kolenda and Kar Wing (Calvin) Ng reduced their holdings.
Director of Firstmac, David Gration, has also recently been appointed to the BNK board as a director, following his senior role at Firstmac for over 10 years and former roles at NAB and Suncorp.