Powered by MOMENTUM MEDIA
subscribe to our newsletter

ME boss calls for more regulatory reform

ME's chief executive has called for more regulatory changes to “level the playing field” among Australian mortgage providers.

Jamie McPhee says further changes are required this year to ensure a level playing field between regional and major banks, “including the amount of capital held by the advanced model bank”.

Mr McPhee made the call yesterday as he unveiled ME's half-year profit results.

ME saw its net interest income jump by 9 per cent in the six months to 31 December 2015. It said recent rate hikes would lift its net interest margin in 2016.

The non-major reported an after-tax underlying net profit of $30.2 million for the six months ended 31 December 2015, a rise of 8 per cent on the previous corresponding period.

Advertisement
Advertisement

Mr McPhee said it was a strong result in challenging conditions and the bank was expecting further profit growth in the second half of the year.

“Net interest margin in the next six months will benefit from recent rate increases following regulatory capital changes imposed on the banking sector, although this will be partially offset by the increased cost of funding that is putting current margins under pressure,” he said.

The non-major’s brand awareness jumped 11 points to 51 per cent since the bank rebranded in July 2015, the highest level the bank has recorded, with customer numbers growing to 347,000.

Net interest income increased 9 per cent to $149.3 million and total operating expenses increased 7 per cent to $133.2 million, the latter reflecting the ongoing investment in technology and the brand.

Meanwhile, ME’s new mobile app, which launched in July last year, has increased mobile-based transactions threefold.

PROMOTED CONTENT


“The bank is close to finalising the technical infrastructure to display industry super member balances on its online and mobile banking platforms through a joint partnership with Link Group,” ME said.

The bank said initiatives with industry super funds contributed significantly to customer and home loan growth, including a new program that directly markets exclusive offers to partner members.

[Related: ME names new chairman]

ME boss calls for more regulatory reform
mortgagebusiness

Latest News

Steve Kane, NAB’s longstanding executive for broker distribution, has announced his retirement from the major bank after nearly 30 years i...

While CDR and open banking could pose a risk to brokers retaining their clientele, their value proposition would lie in the insight and advi...

A start-up company that purchases homes for home buyers has secured funding from x15ventures after winning the fintech’s program for entre...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.