ME Bank profit up 27%

Industry super fund-owned bank ME has reported an underlying net profit after tax of $60 million for FY2015, a rise of 27% on the previous reporting period.

The increase was driven by growth in home loan settlements, up 22 per cent to $4.6 billion, as well as disciplined management of net interest margin.

ME chief Jamie McPhee, said it was a strong performance.

ME’s cost-to-income ratio continued to fall, reducing 260 basis points to 68.5%.

McPhee said cost-to-income had been on a downward trajectory since June 2009 when the ratio was 84.5%.

Customer numbers grew 8% to 338,000 with customer deposits increased 7 per cent to $8.8 billion.

Total on and off balance sheet assets grew 7 per cent to $23.3 billion, with total loans on the balance sheet growing 19% year-on-year to $17.8 billion.

The broker sales channel surpassed $2.2 billion, up from $1.2 billion last year, an increase of 83%.