Mutual bank records 'strong and balanced' result despite some headwinds

by Julia Corderoy29 Sep 2014
Mutual bank, Bankmecu has announced a net profit after tax of $25.49 million for the 2014 financial year. This is a 3.15% decrease from last year’s earnings, but the bank remains confident that it is a “strong and balanced” full-year result.

Managing director Damien Walsh says the results are pleasing given the current environment.

“Customer deposits grew by 5.19% and customer loans by 5.14%, which is a very solid result in the current low growth environment.”

Walsh also said it was a solid outcome given a tightening net interest margin and ongoing investment in customer acquisition, service delivery and technology innovation.

“A 13 basis point reduction in the net interest margin was a result of competitive pressures across the market,” he said.

Despite these headwinds, the customer-owned bank hit record levels of new customer acquisition, with overall asset growth of 6.1% and a 9.03% increase in reserves.

Looking ahead, Walsh is confident the bank will continue to grow.

“I am confident these combined results confirm we continue to offer customers a unique value proposition. 

“With a very strong capital adequacy ratio of more than 20% we are well positioned to grow and provide customers with highly competitive prices, products and services,” he said.