Bank Australia delivers record customer and asset growth in FY21

Total assets grew by 17.6% to $8.5 billion, while loan and deposit growth remained strong at 13.8% and 11.5% respectively in the 12 months to 30 June 2021. Profit for the period was $40.7 million, up from $19.6m the previous year. The profit result was largely driven by significant cost savings and deferrals in planned project investments and strong revenue and balance sheet growth.    

According to Managing Director Damien Walsh, the results reflect a continued focus on staying true to the bank’s purpose and values while supporting customers and employees through uncertainties brought by the Covid-19 pandemic.

“We approached the 2021 financial year with caution and our plans for the year considered the significant uncertainty surrounding the pandemic.

“Having prepared for the worst, we were satisfied with how the year ultimately unfolded. It has been one of extraordinary growth and continued success for Bank Australia.

“Despite the challenging environment, our financial performance over the past 12 months has been strong and we are pleased to have achieved above system rates of growth while maintaining a fair and competitive balance between rates for borrowers and depositors.

“We funded almost $2billion in loans in FY21, an increase of 34.3% on the previous year, and by far the strongest year of lending in our history.

“We also continued to support customers through the pandemic, by deferring loan repayments, waiving fees, consolidating debt and providing guidance on government support schemes. Thankfully, as the second Covid-19 wave eased in Victoria we saw the vast majority of our customers who needed help get back on their feet.

“This year we continued asking people to consider how they can use their money to improve their own lives, the lives of others and the planet.

“Our clean money proposition continued to resonate with our target market as we attracted a record number of new customers this year. Along with this growth, the average age of new customers dropped again to 35, down from 44 only three years ago.

“We’ve continued to deliver on our strategy to develop the capacity of our people as values based leaders, and continued to develop our digital transformation roadmap to meet the evolving needs and expectations of our customers.

“Importantly we continue to balance the need to invest in the business, while continuing to build capital to support growth as we look to create even greater positive impact on behalf of our customers.

“This year we hit another milestone with our impact finance portfolio reaching $1.08 billion in assets that create positive impact for people and the planet, up from $746 million in 2020.

“Highlighting our commitment to positive impact, we launched our partnership with Indigenous Business Australia, which will create new opportunities for more Aboriginal and Torres Strait Islander people to achieve home ownership.

“This is another example of responsible banking helping to build a fairer and more inclusive society.

“Looking ahead to FY22 we will make significant investments in projects and technology to support improved customer and employee experience, while continuing to support our customers and employees through the ongoing COVID-19 pandemic.”

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Summary of Bank Australia’s 2020-21 financial performance: