Heritage Bank lends less, but profits up

Heritage Bank lends less, but profits up
Heritage Bank lends less, but profits up

Heritage Bank has lifted its profit in 2015/16, despite loan approvals being down slightly.

Its retail deposits grew strongly, up by $294 million (6.05 percent) to $5.16 billion.

Its chairman Mr Kerry Betros said the results reflected the key drivers of a renewed corporate strategy that is now being implemented. 

“Our Roy Morgan customer satisfaction rating at 30 June 2016 was 94.3 percent, the highest of any financial institution in Queensland,” he said. 

“Canstar Blue awarded Heritage the 2016 Most Satisfied Customers award in the Challenger Bank category across Australia 

“We also took out the 2016 Mozo People's Choice Award for overall customer satisfaction, an award based on actual customer reviews completed throughout Australia during the year. 

“In addition, independent analysis by research company CANSTAR, found that our customers were $50 million a year better off in 2015/16 through banking with Heritage rather than one of the big four banks. 

“That’s a compelling demonstration of how banking with a customer-owned organisation provides tangible benefits for our customers.

“Our mutual ethos stretches back to our origins in Toowoomba 141 years ago."

Australia’s largest mutual bank, with a national presence, reported a capital adequacy ratio at 30 June 2016 was 13.95% and its liquidity ratio was 15.94%, well above regulatory requirements.

Heritage’s mortgage loan arrears greater than 30 days was 0.30 percent at 30 June 2016, well below the industry average. 

Its CEO Peter Lock said today that Heritage's unaudited financial results for the 2015/16 year showed pre-tax profit of $51.11 million, up 6.46 percent on the $48.01 million achieved the previous year.  

The after tax profit was $36.14 million, up 7.53 percent on the $33.61 million achieved in 2014/15. 

Loan approvals were down slightly (3.26 percent), reaching $1.78 billion in 2015/16 compared to $1.84 billion in the previous year. 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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