Brokers drive strong results for mutual

by Maya Breen25 Feb 2015
Mutual lender, Heritage Bank has seen a strong growth in loans, largely due its broker channels.

Broker channels have contributed to just over 40% of Heritage Bank’s total loan approvals of $792,97 million for the six-month period.
Lending growth was up 20.7% on the corresponding period in 2013.
Heritage has maintained solid profit results although down slightly, with profit after tax at $16,230 million, down 9.5% on the same period in the previous year.
Chairman Kerry Betros says the slight reduction in profit is a reflection of increased investment in technology and process improvements, and continued jobs growth.
The bank received the highest customer satisfaction rating in Queensland of 92.8%, 10.3% above the average rating of the four major banks.  

“We are targeting increased loan volumes this financial year to help grow this business. After a relatively slow start, we are well and truly delivering on that goal with a 20% increase in loan volumes,” Betros said.
Betros said their one-year fixed home loan interest rate of 3.99% was offered over the half year period, the lowest in Heritage’s 140-year history.
“Our extremely sharp pricing provides great value for customers as well as helping secure an increased share of the home loan market.”
Mortgage loan arrears greater than 30 days sat at just 0.41% of the total mortgage portfolio balance at 31 December 2014.