Auswide provides M&A update, posts FY17 lending results

In a trading update on Friday (18 August), Auswide announced a net profit after tax (NPAT) of $15.6 million, up by 11.4 per cent on FY16.

The bank’s loan book increased by just over 4 per cent to $2.8 billion over the 12 months to 30 June, despite modest loan growth in the first half of the financial year due to the implementation of the bank's new LendFast loan origination system. Home loan approvals totaled $553.8 million in FY17, down by 6.39 per cent for the year.

The bank provided a comprehensive update of its investment in peer-to-peer lender MoneyPlace and merger with Your Credit Union (YCU), the first merger between a listed bank and a mutual in 11 years.

“The integration of the systems and products and YCU customer data were fully consolidated with Auswide’s core banking system on 30 September 2016,” Auswide said in a statement.

“The merger was a strategic acquisition for Auswide with the addition of a branch in the Brisbane CBD, strong customer retention, along with deposit book growth and capitalisation of financial synergies.”

Auswide also holds a 63.3 per cent interest in P2P lender MoneyPlace, which started originating loans in January 2016. The company provides loans of between $5,000 and $35,000 through its platform.

“The strategic alliance with MoneyPlace provides a technically advanced personal loan system solution to a niche consumer finance market,” Auswide said.

“The relationship provides an avenue to increase the group’s consumer lending ambitions and provides significant opportunities for platform collaboration and value accretion.

“An uplift in loan originations through the MoneyPlace platform has resulted in an increased return on Auswide's investment. The investment in MoneyPlace has grown from $1.412 million at 30 June 2016 to 14.042 million at 30 June 2017, representing an increase of $12.630 million.”

[Related: Non-major increases stake in P2P lender]