People’s Choice lifts profits in cautious market
People’s Choice Credit Union, the state’s largest non-bank financial institution, has reported increased profit and strong deposits growth for the 2014 financial year.
The group, which has around 240,000 members in SA, achieved year-on-year growth across its business, leading to an after-tax profit of $25.5 million, up 9 per cent on the previous year.
“We’ve performed very solidly in what remains a subdued market,” managing director Peter Evers told InDaily today.
“Housing activity is a lot quieter here in SA than the other states.
“There’s a much more conservative outlook.
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“Despite rising unemployment we are seeing a lowering of our delinquency rate on mortgages, increased savings and a tendency to stay ahead in their payments.
“In the low interest rate environment, which we expect to continue for some time yet, home owners are maintaining their level of payment and in many cases they are a year ahead of their scheduled payments.”
Evers said this stability was a positive.
“I don’t see any easing of credit policies; we prefer to have a prudent approach to protect member’s funds.”
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People’s Choice member deposits grew by 6.82 per cent to fractionally below the $4 billion mark.
There was also a 1.8 per cent rise in total assets under management to $6.67 billion.
The credit union continued to invest resources to provide state-of-the-art account access.
“Access is the new competitive front and we are right up at the front of the pack.
“With mobile technology flourishing we will always make sure our members can enjoy the same kind of app-based account access – including smartphone banking and tap and pay technology – that the major banks provide.”
For the next 12 months and beyond, People’s Choice will maintain its long-term growth strategy.
“The environment of low interest rates and consumer caution has been in place for three to four years and we see it continuing for at least another 18 months to two years.
“In that context we’ll continue to improve our position.”
