Local credit union, People’s Choice, has recorded a 30 per cent profit jump to $28.8 million.
The credit union also recorded a 5.5 per cent increase in member’s deposits.
It traded under the brand Australian Central until a merger of divisions in 2011.
“Last financial year we attracted more than 20,000 new members – that’s more than we aimed for and many more than anyone else in the customer-owned banking sector,” People’ Choice managing director Peter Evers said.
“In the two years since we launched the People’s Choice brand we solidified our foundations.
“Now we’re actively taking our overall offer to a wider market and the response has been very, very good.”
The group’s branch expansion program has seen new branches open in Canberra and Melbourne.
Most of the profit boost came from the net impact of the sale of its Flinders Street building.
“Net profit after tax of $28.8 million was positively impacted by the sale of People’s Choice’s former head office building in Flinders Street, Adelaide, offset by costs associated with signing a new lease for the new head office, with a net after-tax profit impact of $5.438 million,” the group said in a statement.
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Loan balances (on balance sheet and third party portfolios) grew by 3.8 per cent to $5.6 billion, member retail deposits grew by 5.5 per cent to $3.7 billion and total assets under management and advice grew to $8 billion.
“Our results are ahead of budget, which is pleasing given economic activity has been modest at best and the incredible competition which exists in the banking sector,” Evers said.
“Nationwide membership is also expanding; for example, through our Online Personal Loan project which has resulted in online personal loans now accounting for a quarter of all our personal loans compared to a tenth only two years ago.”
In its outlook the group expected the financial services market to “remain fiercely competitive while interest rates remain low”.
