ME CEO Jamie McPhee said that it was another strong performance and continued ME’s strong profit growth over the past five years.
Mr McPhee said that the NPAT growth largely reflected a 12 per cent increase in ME’s home loan portfolio, with net interest margin falling by 5 basis points to 1.50 per cent and total expense growth of 3 per cent.
The non-major lender’s NPAT has grown at an annual compound rate of 28 per cent since 30 June 2012.
Mr McPhee said: “Growth has been the main story for ME in FY17, with home loan settlements up [by] 36 per cent to $6.2 billion, an increase in total assets of 7 per cent to over $26.5 billion, customer deposits up [by] 20 per cent to $12.6 billion, and customer numbers up [by] 15 per cent to 420,000.
“The bank’s performance is particularly positive in light of the external operating environment — softening credit growth, macro-prudential restrictions on home lending, regulatory imbalances that give the major banks a competitive advantage, and a banking industry ratings downgrade by S&P in May.”
ME’s underlying return on equity increased by 10 basis points to 8.3 per cent, continuing the trend towards the medium-term target of 10 per cent, while the cost-to-income ratio reduced further from 65.8 per cent to 63.5 per cent.