Large mutual lender, Heritage Bank
has grown its loan approvals by almost 30% over the 2015 financial year.
Heritage approved loans worth $1.838 billion in 2014/15, up 27.6% on the $1.440 billion approved in the previous financial year, according to the unaudited financial results released yesterday. Heritage’s overall loan book has climbed by $227 million, a 3.5% increase.
Heritage Bank chairman Kerry Betros says continuing on a trajectory of growth will be a priority for the mutual lender.
“Growth is a key driver in our corporate strategy and the 27.6% increase in loan volumes this year is a direct outcome of that goal. We will continue to look for growth in subsequent years, on the back of our extremely competitive pricing, great product range and personalised service,” he said.
Betros says a digital revolution will be at the heart of achieving sustained growth.
“We are in the middle of a five-year digital transformation program that is ensuring we invest in the technology and staffing resources needed to capitalise on the rapidly advancing digital technologies in banking.”
According to the results, Heritage’s mortgage loan arrears greater than 30 days are also about a third of the industry average, at 0.39%. Heritage CEO John Minz says this is proof that their growth plans are not affecting their rigorous approach to lending.
“That achievement speaks volumes about the prudent approach we take to lending and also about the work that we do with customers to make sure they can stay on top of their loan obligations,” he said.