Bank Australia today released its 2018 financial results achieving both strong customer acquisition and balance sheet growth.
The bank’s total assets grew by 9% to $5.7 billion, customer numbers grew by 10% and the bank generated a net profit after tax of $26.1 million, an uplift of 11%.
This year also saw customer satisfaction increase to 91%, up from 86% in 2017 and was recognised as CANSTAR Customer Owned Bank of the Year 2018.
According to Managing Director Damien Walsh, the results reflect the bank’s continued focus on staying true to its purpose and putting customers at the centre of the bank’s business.
“During 2018 we launched the bank Australia needs campaign, which not only has seen a 10% increase in customers but a shift to younger customers joining the bank with the average age of new customers at 39 years. Many of these people are switching to Bank Australia because of our responsible approach to banking,” said Walsh.
“Our financial performance was strong and we were pleased to grow at a higher rate than the overall financial system, while continuing to offer competitive rates and fees to our customers.”
“Efforts to enhance our customer experience saw an uplift in customer satisfaction to 91% with improvements across digital platforms and lending driving much of this result.”
“In addition, our first sustainability bond successfully attracted $125 million to support a contribution to three of the United Nations Sustainable Development Goals: reduced inequalities, sustainable cities and communities, and life on land,” said Walsh.
“Our support of a number of projects through the Bank Australia Impact Fund will further deliver positive impact for people and the environment including partnerships with The Big Issue and Human Rights Watch and our ongoing investment in the bank’s Conservation Reserve. We were also delighted that the Melbourne Renewable Energy Project moved ahead as it will see the bank transition to using clean electricity,” said Walsh.
Bank Australia was also recognised as an Employer of Choice in the Australian Business Awards 2018, recognising the bank’s commitment to creating a collaborative, inclusive work environment based in the principles of customer centric, responsible banking.
Summary of Bank Australia’s 2017-18 financial performance:
|Net Profit After Tax||$m||26.10||23.49||2.61||11.11%|
|Net Interest Revenue||$m||102.91||89.94||12.96||14.41%|
|Net Interest Margin||%||1.87%||1.99%||-0.12%||-6.03%|
|Cost to Income||%||69.44%||69.50%||-0.06%||-0.09%|
|Return on Assets||%||0.48%||0.51%||-0.03%||-5.47%|