BNK Banking Corporation has announced that its group-wide loan book has surpassed $50 billion, driven by strong settlement growth via the group’s third-party business, Finsure.
According to BNK Bank chief executive Brett Morgan, Finsure’s momentum has continued over the first few months of the 2020-21 financial year (FY21), with origination growth coinciding with an increase in the size of its broker network, which now totals approximately 1,800.
“Reaching the milestone of $50 billion is extremely pleasing and with Finsure loan writers at record numbers, BNK is well positioned to continue building market share as one of Australia’s newest challenger banks,” Mr Morgan said.
Mr Morgan claimed that the group’s on-balance sheet loan book has also performed well over the first few months of FY21, with the number of borrowers on COVID-19 assistance falling from 5.6 per cent in March to 3.4 per cent as at 15 October.
This latest update follows the release of BNK’s full-year results for the FY20, in which it posted a net profit after tax of $5.3 million, up 47 per cent on FY19.
The result was driven by net income growth of 17 per cent to $35.5 million, off the back of strong lending and deposit growth.
Finsure-originated settlements increased 23 per cent, from $12.6 billion to $15.6 billion, while on-balance sheet settlements via BNK Bank increased 73 per cent, from $74.5 million to $129.1 million.
As a result, the group’s combined loan book grew 18 per cent, from $40.6 billion to $$41.8 billion.
Bank deposits grew 20.5 per cent, from $287.1 million in FY19 to $345.8 million.