In its full-year 2018 (FY18) financial results, Bank Australia has reported a drop in loan settlements of 17.5 per cent, down from $1.44 billion in FY17 to $1.19 billion.
The lender’s gross loan portfolio grew from $4.29 billion in FY18 to $4.69 billion in FY18.
However, despite the fall in loan volumes, Bank Australia posted a net profit after tax (NPAT) of $26.1 million, up from $23.4 million in FY18.
According to the bank, the profit increase was driven by asset growth and “strong customer acquisition”.
Bank Australia’s total assets grew by 9 per cent to $5.7 billion, while customer numbers grew by 10 per cent.
Customer deposits also increased, rising by 11.3 per cent from $4.17 billion in FY18 to $4.64 billion in FY18.
This year also saw customer satisfaction increase to 91 per cent, up from 86 per cent in 2017, making the bank recognised as CANSTAR Customer Owned Bank of the Year 2018.
Reflecting on the results, managing director of Bank Australia Damien Walsh said: “During 2018, we launched the ‘bank Australia needs’ campaign, which not only has seen a 10 per cent increase in customers but a shift to younger customers joining the bank, with the average age of new customers at 39 years.
“Many of these people are switching to Bank Australia because of our responsible approach to banking.
“Our financial performance was strong and we were pleased to grow at a higher rate than the overall financial system, while continuing to offer competitive rates and fees to our customers.”
Mr Walsh also noted the bank’s efforts to enhance the customer experience, which he said saw an uplift in customer satisfaction to 91 per cent, citing improvements across digital platforms.