The lender’s positive mortgage performance has remained consistent, coming off the back of an increase of 8.95 per cent in 2012/2013.
Having made a highly successful entry to the mortgage broker channel in 2013/2014, chief executive Steve James attributes some of the home loan result to broker-generated loans after the bank entered the third-party channel late last year.
“Our entry to the broker home loan channel has gone exceptionally well, and contributed in part to our very sound performance in home loans,” Mr James said.
“With 50 per cent of Australian home loans facilitated by brokers, we can now serve more members and potential members for their mortgage needs,” he said.
Residential mortgages make up 92 per cent of the bank’s lending portfolio.
Teachers Mutual posted a net profit after tax of $25.8 million, down 8.16 per cent from $28.1 million in 2013.
Factors influencing the fall in profits included the abolition of some transaction fees, a fall in interest rates, and continued capital investment in IT systems and product development, Mr James said.
“The mutual bank continues to invest in new and innovative products, and this year introduced a highly competitive mortgage offset facility, with the rare feature of being available across all home loan products,” he said.
The bank’s asset base grew by 7.48 per cent to $4.4 billion.