Bank of us posts record profit growth

Bank of us, Tasmania’s only 100% customer-owned bank, has reported a record profit result for the 2022/23 financial year, driven by above-system growth in the bank’s loan book and higher interest rates.

Bank of us FY23 key financial results:

• Total assets grew 14% to $1.55 billion
• Loan approvals hit a record $400 million, driving record funding and 12% growth ($138 million) in the loan book to $1.26 billion
• Market share of housing finance in Tasmania increased to 10%
• Deposits grew 15%, or $186 million, to $1,39 billion.
• Record underlying after tax profit result of $9.4 million

Bank of us said the increase in overall lending, plus higher savings and term deposit rates also resulted in a record flow of new customers, with 3,840 more people choosing the bank.

“As a customer owned bank, we don’t have external shareholders, so our profits are reinvested into the business to deliver better banking products and services for our customers,” Bank of us CEO Paul Ranson (pictured above) said.

Bank of us is the exclusive lender for the Tasmanian Government’s MyHome program. Rolled out at the start of the financial year, the program has proven to be market-relevant, with 162 property purchases completed in the first 12 months.

Helen Galloway, Bank of us chair, said investment in the Tasmanian housing sector remained strong despite the current economic cycle placing pressure on household budgets.

“We have benefited from continuing demand in housing, and it has helped us to build a solid, sustainable business,” Galloway said. “We are valued by Tasmanians, and we thank our customers for their loyalty and support.”

Ranson said the bank’s payment services were migrated to a new platform during the year.

“The migration was a significant project,” he said. “It included an upgrade to our fraud monitoring system enhancing protection for our customers. The safety and security of our customers’ funds is fundamental.”

Galloway said this year’s results reflect the effective delivery of the bank’s strategic priority of getting Tasmanians into homes.

“Since our beginnings in 1870, housing finance has been our focus and our results this year show we’ve remained true to our purpose,” she said.

Bank of us has more than $1.55 billion in assets and seven retail stores, serving 33,600 customers.

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