Bank Australia today released its annual financial results demonstrating strong balance sheet and record new customer growth.
Total assets grew by 13.7% to $7.2 billion, while loan and deposit growth remained strong at 6.4% and 12.2% respectively in the 12 months to 30 June 2020. Profit for the period was $19.6 million, down from $22.8m the previous year.
According to Managing Director Damien Walsh, the results reflect a continued focus on staying true to the bank's purpose and values while responding to the uncertain and unprecedented external environment.
"Despite the challenges 2020 has brought with the summer bushfire crisis and the COVID-19 pandemic, we continued to see strong month-on-month growth in new customers, deposits and lending.
"During these extraordinary times, our focus has been on supporting the welfare and wellbeing of our customers and staff, and protecting the long-term sustainability of their bank.
"The COVID-19 pandemic has impacted the livelihoods of many customers, and we have seen a significant increase in people needing help with loan deferrals and other support. Our dedicated hardship support team has been working closely with customers, many of whom have been able to return to making their loan payments.
"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 in a low interest environment, while still offering very competitive pricing to our customers.
"While our profit result was impacted by the COVID-19 pandemic and the provisions we have made for potential losses in our loan portfolio, we are strongly positioned for the future.
"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.
"Clean money is a proposition that resonated strongly with our community and we are witnessing a clear shift in the number of people recognising the impact their money can have in creating a better world for both current and future generations.
"We've continued to deliver on our strategy to develop the capacity of our people as values based leaders, and to enhance our technology platforms, cyber security and digital banking services to meet customer needs and expectations. This multi-year program of investment in people and technology has resulted in a cost-to-income ratio of 73.5%.
"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.
"We also continued to grow our Impact Finance portfolio of assets that create positive impact for people and the planet to $746 million, up from $610 million in 2019.
"Highlighting our commitment to positive impact, we launched our Clean Energy Home Loan in January in partnership with the Clean Energy Finance Corporation offering people an incentive to build, buy or renovate more energy efficient homes.
"This is another example of responsible banking in action with customers rewarded for making sustainable choices to minimise the environmental impact of their homes.
"Looking ahead we will further build on the trust our customers place in their bank, take a measured response to sustainable growth, and continue to invest in our operating model while providing ongoing support to our customers and staff through the COVID-19 pandemic."
Summary of Bank Australia's 2019-20 financial performance:
| Jun'20 |
Jun'19 |
Change |
Change % |
||
| Net profit after tax |
$m |
19.63 |
22.82 |
(3.19) |
(13.97) |
| Net interest revenue |
$m |
114.06 |
109.37 |
4.69 |
4.29 |
| Net interest margin |
% |
1.68 |
1.79 |
(0.11) |
(6.15) |
| Cost to income |
% |
73.52 |
73.48 |
0.04 |
0.05 |
| Return on assets |
% |
0.29 |
0.38 |
(0.09) |
(23.86) |
| Assets |
$b |
7.20 |
6.33 |
0.87 |
13.72 |
| Customer deposits |
$b |
5.92 |
5.28 |
0.64 |
12.16 |
| Gross loans |
$b |
5.56 |
5.23 |
0.33 |
6.41 |
| Loans funded |
$m |
1,455.86 |
1,462.59 |
(6.74) |
(0.46) |
| Reserves |
$m |
554.60 |
533.22 |
21.38 |
4.01 |
| Capital adequacy |
% |
15.81 |
16.39 |
(0.58) |
(3.54) |
