Non-major lender Auswide Bank has announced a small increase in its FY2016 net profit after tax (NPAT) thanks to solid growth in its loan book over the year.
Released this week, Auswide’s figures show a NPAT of $14.041m over FY2016 which represents a 2.8% increase on FY2015’s NPAT of $13.655m.
The non-major lender’s loan book grew 8.9% to $2.537bn in the 12 months to June 30, but taking into account the loans acquired through Auswides’s merger with Your Credit Union, its loan book grew 14.4% to $2.666bn.
Home loan approvals for 2015-16 totalled $591.571m, an increase of 31.7% compared with $449.048m over 2014-15. This growth was balanced between first party and third party channels, with the broker and mortgage alliance platform contributing approximately 60% of loan originations in the period.
“Auswide Bank’s solid performance is built on the organic growth momentum we have achieved by improving our organisational capabilities across retail and business banking, third party relationships and omni-channel delivery,” Auswide managing director Martin Barrett
“In addition, YCU represents a growth opportunity for us in the current financial year and beyond with the addition of more than 4,000 new customers. Importantly, the merger has positioned Auswide Bank to lead further consolidation in the mutuals sector.”
Auswide claims the growth in its loan book in recent years has also been a prudent increase, shown by a creditable arrears performance.
Total arrears greater than 30 days past due increased to $26.0m from $22.3m in 2014-15 and despite economic challenges in Auswide Bank’s traditional markets, arrears remain materially lower than those reported in 2013-14.