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The CEO of a non-major bank has praised its performance in the last financial year, while elaborating on plans to expand the branch network.
In the last financial year, Heritage Bank saw loan approvals increase 8.3% year-on-year, while its loan book grew by 109.8%.
The broker channel originated $920m in loans over the period, up from $767.9m the previous year. The figure is equivalent to 52% of the home loan book, a 5% year-on-year gain.
Meanwhile retail deposits grew by 5.5% and the bank’s capital adequacy ratio increased to 14.42% from 14.11%. The bank’s liquidity ratio also increased to 15.5% from 14.74%.
Customer numbers grew by 1.8% and Heritage ended the financial year with total assets of $10.1bn, up 5.9% on the previous year.
CEO Peter Lock said the results consolidated the bank’s position as “Australia’s largest customer-owned bank” however chairman Kerry Betros added that market conditions over 2019 saw customer-owned banks “penalised for the misdeeds of the big banks”.
“A clear finding from the Royal Commission was that much of the poor behaviour identified at the big banks occurred because of greed, with profit and personal gain taking priority over the best interests of customers,” he said.
“… Customer-owned banks are fundamentally different. We don’t have the conflict of trying to serve two masters – shareholders and customers. Everything we do is in our customers’ interests. The danger now is that the customer-owned sector will be penalised for the misdeeds of the big banks, because the Royal Commission will result in us facing greater regulation,” he added.
However, market conditions won’t stop Heritage building on recent momentum.
As reported by Australian Broker in July, Heritage Bank will open two new branches in Sydney before the end of the year.
Elaborating on the plans, Betros confirmed the first new branch will open in Sydney’s Castle Hill late next month followed by a second in Parramatta, due to open its doors mid-December.
“We remain absolutely committed to maintaining and expanding the reach of our branch network, which is very different to the big banks who are closing down branches,” said Betros.
“Online and mobile capabilities are fantastic, and play a central role in our approach to transactions, but it’s the interaction that our customers have with our staff that’s at the heart and soul of our service offering,” he added, while highlighting that Heritage will still place a strong focus on the digitisation of its services.
The 144-year old, customer-owned Heritage Bank has an existing network of 60 branches and three mini-branches. The new additions will be the first – and second – branches outside of its native Queensland.
