Clean money drives strong growth for Bank Australia
Bank Australia today released its 2019 financial results showing record levels of new customers are joining the bank and strong balance sheet growth.
Over 19,000 new customers switched to Bank Australia over the past financial year, while total assets grew by 12% to $6.3 billion, generating a sound net profit after tax of $22.8 million.
A strong Net Promoter Score of 44.6 and customer satisfaction levels at 88% reflect the bank’s increased investment in technology, capacity, capability and brand.
Managing Director Damien Walsh stated this strong growth was achieved by staying true to purpose and putting customer wellbeing at the centre of the bank.
“During 2019 we evolved the bank Australia needs brand strategy with the launch of our clean money position, which aims to educate people that money can have either a positive or harmful impact on society and the environment depending on how it is invested.”
“Our customer research tells us that more than 60% of customers are now switching to Bank Australia because of our approach to more responsible banking.”
“We have achieved levels of growth well above system while maintaining strong financial performance and competitive pricing to our customers.”
In line with the bank’s commitment to raising the bar for responsible banking, it became the first Australian bank to source 100% of its electricity from renewable energy sources.
Bank Australia received a number of consumer awards in 2019, including the CANSTAR Customer Owned Bank of the Year and Money Magazine Customer Owned Institution of the Year.
“Looking to the future, all banks would need to pay close attention to delivering customer value while managing their net interest rate margin in an operating environment characterised by historically low interest rates,” Damien said.
“An additional and important consideration is responding to the ever-increasing risk that cyber security represents,” he added.
To read our 2019 Impact Report and Financial Report click here.
Summary of Bank Australia’s 2018-19 financial performance:
|
|
Jun’19 |
Jun’18 |
Change |
Change % |
|
|
Net profit after tax |
$m |
22.82 |
26.10 |
(3.28) |
(12.57) |
|
Net interest revenue |
$m |
109.37 |
102.91 |
6.46 |
6.28 |
|
Net interest margin |
% |
1.79 |
1.87 |
(0.08) |
(4.28) |
|
Cost to income |
% |
73.48 |
69.58 |
3.90 |
5.61 |
|
Return on assets |
% |
0.38 |
0.48 |
(0.10) |
(21.14) |
|
Assets |
$b |
6.33 |
5.65 |
0.68 |
12.04 |
|
Customer deposits |
$b |
5.28 |
4.64 |
0.64 |
13.69 |
|
Gross loans |
$b |
5.23 |
4.69 |
0.54 |
11.49 |
|
Loans funded |
$m |
1,462.59 |
1,194.40 |
268.19 |
22.45 |
|
Reserves |
$m |
533.22 |
510.17 |
23.05 |
4.52 |
|
Capital adequacy |
% |
16.39 |
16.64 |
(0.25) |
(1.50) |
