Putting People First has delivered loan growth to new bank, but profits slip
Australia’s largest customer-owned bank has reported above-system home loan growth for the first half, although its profit has slipped.
People First Bank chief executive Peter Lock poses at the newly renamed People First Bank stadium on the Gold Coast. (AAP Image/Supplied)
People First Bank’s residential loans portfolio increased by $550 million in the six months to December, an annualised growth rate of six per cent, compared to system growth of 4.2 per cent.
The financial institution formed by last year’s merger of Heritage and People’s Choice banks made a $31 million profit, down slightly from $32 million a year ago.
Retail deposits increased by 5.2 per cent to $18.29 billion, with total assets up 5.3 per cent to $24.6. billion.
Overall net membership grew by 13,586 to more than 730,000 members nationally and it hopes to grow that number to in excess of one million.
Chief executive Peter Lock told AAP there hadn’t been an iconic national mutual brand in Australia since the demutualisation of AMP in 1998.
“The listed model has taken over the Australian corporate landscape and we think that’s disappointing, because the mutual cooperative model offers a viable alternative to corporate structures,” he said.
“And up until now the avenue to enjoy that has likely been restricted either to geography, or occupation, teacher’s credit union, police credit union, things like that.
“People don’t realise that they are open to the whole population in a very different model.”
AFL club the Gold Coast Suns on Friday unveiled new branding at its home ground for what is now People First Stadium, the former Heritage Bank Stadium in Carrara, Queensland.
