Media Release: BankVic announces strong financial year results

Wednesday 5 October 2016

BankVic has delivered a solid result for the financial year with net profit after tax (NPAT) of $10.2m, up from 4.6 per cent on last year's results. The result was driven by continued growth across lending, assets and membership.

2016 performance highlights:

  • Total income for the year was $45.3 million, an increase of 7.7% on the previous year.
  • Net earnings increased by 4.6% to $10.2 million.
  • Our membership base grew to 100,263.
  • Assets grew by 10.2% to $1.5 billion.
  • Lending grew by 11.1% to $1.2 million.
  • Deposits grew by 9.8% to $1.3 million
  • Capital adequacy to remain strong at 20.5%.

“Despite a challenging economic environment, BankVic achieved some key successes driven in part by new lending, which increased significantly this year at 11.1% and above system growth, as our members continued to benefit from historically low interest rates. This strong performance continues to provide the platform needed to invest in our bonded community and deliver a member experience that is relevant and preferred by our membership,” said BankVic CEO Stephen Capello.

“As a mutual bank, our members can be assured that BankVic has their financial interest at heart. We are committed to ensure we remain relevant by investing in our digital capabilities to provide our members with the latest digital experience and seamless access to our products and services across all our channels,” said Stephen.

Whilst lending products remained a key profit driver which saw BankVic fund $421 million in new loans and mortgages, our long term partnership with CGU was solidified and our member insurance coverage increased by 11.81%.

Mr Capello highlighted that the strong bank performance was driven by higher net interest income, up 7.7 per cent to $45.3m which allowed our capital adequacy, a representation of the bank’s strength, to remain strong at 20.5%.

This year BankVic were also recognised externally, winning a number of industry awards, including the 2016 Mozo People’s Choice award for banking and a number of Canstar 5 star awards for credit cards and savings and transaction accounts. BankVic also rated well in member satisfaction which increased to 91%, above target levels.

For more information about BankVic’s financial position and performance, download a copy of the 2016 BankVic Annual Report at bankvic.com.au/about-us/annual-report.

ENDS

BSB: 704 230

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