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Increased demand from brokers is among a number of factors helping ME bank achieve strong profit growth, according to company’s CEO, Jamie McPhee.
Speaking after the bank published its half-year results late last week, McPhee said the bank’s brand and competitive pricing were partly to thank for an underlying profit growth of 26 per cent.
He also said increased demand from brokers had played a role in the growth, as had improved customer experiences, made possible as a result of new technology.
“The home loan portfolio grew by 1.6 times system during the period and total assets hit $27.5 billion, up 5 per cent on the previous corresponding period,” said McPhee.
ME settled $3.3 billion of home loans for the first six months of the financial year, up four per cent year-on-year, including record high owner occupied lending – up $478 million on the same period last year.
“Customer deposits grew 10 per cent to $13.8 billion and now represent 54 per cent of total funding, while customer numbers reached 446,235, up 13 per cent year-on-year,” he added.
The bank also confirmed that home loan delinquencies (90 days or more) were tracking below the average, at just 0.54 per cent.
McPhee also addressed ongoing discussions with regulators and the federal government on the issue of competitive neutrality.
“We are pleased by recent statements on capital requirements, open banking, comprehensive credit reporting, and a recent draft report by the Productivity Commission, all of which highlight that more needs to be done to improve competition in the banking industry,” he said.
“Improving competition in banking ultimately benefits consumers – supporting greater choice, encouraging service and product innovation, and creating a stronger and more stable banking system. ME will continue to work toward levelling the playing field.”
