The mutual bank has released its annual financial results for FY21, which showed that total assets grew by 17.6 per cent to $8.5 billion.
Gross loans rose by 13.7 per cent to $6.3 billion while customer deposits were up 11.5 per cent to $6.6 billion in the 12 months to 30 June 2021.
Net profit after tax increased by 107.3 per cent year-on-year to $40.7 million, while net interest revenue was up 22.0 per cent to $139.2 million.
According to Bank Australia, the profit result was largely driven by significant cost savings and deferrals in planned project investments and strong revenue and balance sheet growth.
The bank funded almost $2.0 billion in loans in FY21 (up by 34.3 per cent year-on-year), which it said represented the strongest year of lending in its history.
Brokers generated $1.03 billion in new home loans, which was up 54.0 per cent – or $584.5 million – from 2020.
Managing director Damien Walsh said he is pleased with the results in the broker channel as the mutual bank has continued to see growing interest from brokers in recommending it to customers.
He told Mortgage Business: “Working with mortgage brokers has been an important part of our strong growth in recent years. In FY21 we saw significant growth in broker generated loans reflecting the growing awareness of our brand among brokers.”
The bank recorded 383 loan repayment deferrals in FY21 to assist customers in hardship predominantly due to the impact of the coronavirus pandemic. This was down 78.0 per cent from FY20, when there were 1,714 deferrals.
Bank Australia also waived fees, consolidated debts, and provided guidance on government support schemes, according to Mr Walsh.
“Thankfully, as the second COVID-19 wave eased in Victoria we saw the vast majority of our customers who needed help get back on their feet,” he said.
He added that the bank’s clean money proposition attracted a record number of new customers this year, while the average age of the new customer dropped down from 44 three years ago to 35.
“This year we continued asking people to consider how they can use their money to improve their own lives, the lives of others and the planet,” Mr Walsh said.
Bank Australia’s impact finance portfolio reached $1.08 billion in assets, up from $746 million in 2020.
In addition, it launched its partnership with Indigenous Business Australia to assist Aboriginal and Torres Strait Islander home buyers with their home-ownership goals.
“This is another example of responsible banking helping to build a fairer and more inclusive society,” Mr Walsh said.
Commenting on the overall results, he said: “We approached the 2021 financial year with caution and our plans for the year considered the significant uncertainty surrounding the pandemic. Having prepared for the worst, we were satisfied with how the year ultimately unfolded. It has been one of extraordinary growth and continued success for Bank Australia.
“Despite the challenging environment, our financial performance over the past 12 months has been strong and we are pleased to have achieved above system rates of growth while maintaining a fair and competitive balance between rates for borrowers and depositors.”
He concluded that in FY22, Bank Australia would invest in projects and technology and support customers and employees through the ongoing COVID-19 crisis.
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Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.