Australia’s second-largest credit union has announced a record net profit after tax, as well as strong sales and portfolio growth in the FY15/16.
On Monday, People’s Choice announced a record net profit after tax (NPAT) of $35.95 million for FY15/16, up from $25.66 million in the prior corresponding period.
The credit union’s total member loans grew by 8.6 per cent to $6.45 billion, with residential loan balances increasing by 10 per cent and personal loans decreasing by 1 per cent.
The company’s member retail deposits increased by 10 per cent to $4.94 billion and general insurance sales also increased by 11 per cent on the prior financial year.
Chief executive officer Steve Laidlaw attributed the company’s record growth to the surge in young members.
“Of the 23,457 new members People’s Choice welcomed during 2015/16, 44 per cent were under 30 years old,” Mr Laidlaw noted.
The company also reported total assets under management (including loan portfolios under management) of $8.05 billion and funds under advice of $1.59 billion, driving total funds under management and advice to a record $9.64 billion, which was a 7 per cent increase on the previous financial year.
“We recognise that, as a credit union, we offer a genuine alternative for those Australians who have lost trust in the big banks. We don’t have divided loyalties like a bank and this single focus is achieving results,” Mr Laidlaw remarked.
He added that the credit union’s vision is to structure its whole business around a member-centric operating model in order to become “the most trusted financial services provider in Australia”.