Non-major lender Teachers Mutual Bank (TMB) has grown its third party originated loans by $400m year-on-year in an upwards trend it associates with a multi-brand strategy and expanding national footprint.
In the 2015/16 financial year, TMB bank funded around $247m of broker loans which grew to around $674m in the 2016/17 financial year.
In percentage terms, this has gone from 25% to 44% of all loans written through TMB and its subsidiaries, Firefighters Mutual Bank and UniBank, TMB CEO Steve James told
Australian Broker.
As well as growing the business across TMB’s three brands, the bank has also added new offices in Queensland and Western Australia.
“The broker loans are now coming from all over the country.”
At the end of June, TMB had around 2,800 brokers writing loans for TMB.
James expected that Firefighters Mutual Bank and UniBank will further pick up in the broker channel once the brands are recognised interstate.
The highlight of the year was the excellent service that aggregator and broker partners offered the bank’s members, he added, while challenges lay around introducing new brands into the marketplace.
Total loan book growth for the bank and its subsidiaries increased by 20.6% to $5.2bn across the financial year, way above the average system growth of around 6%.
The majority of this is owner-occupied, James said, adding that TMB was well under APRA’s caps for investors and interest-only loans.
Finally, the bank’s net profit after tax sits at $27.9m for FY16/17. This is marginally down from the previous year, due to tighter margins, merger costs, investment in rebranding and implementing new technology.
“We are delighted with these results, especially in a year when we undertook another merger and restricted investment lending in line with APRA requirements,” James said.
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