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BNK Banking Corp has published its full-year results for the 2020 financial year (FY20), posting a statutory 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.
Loan settlements via the group’s mortgage aggregation business Finsure 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.
Meanwhile, bank deposits grew 20.5 per cent, from $287.1 million in FY19 to $345.8 million.
Reflecting on the result, BNK’s interim CEO Don Koch said he was pleased with the result, given the impact of COVID-19.
Mr Koch noted the contribution of the Finsure business to the group’s overall performance, and attributed on-balance sheet lending growth to support from the Better Choice business.
“Our continued growth has been achieved through focused investment in people, systems and innovative product and service offerings that sets the group up for future success,” he added.
The interim CEO also backed the group’s ability to withstand a COVID-induced deterioration in credit quality, with BNK increasing credit loss provisions to 26 bps of the total portfolio.
The group also revealed that as of 19 August, 4.5 per cent of on-balance sheet customers were on deferrals, down from 5.6 per cent in May.
Looking ahead, Mr Koch said the group is “well positioned for strong growth in FY21, despite the ongoing uncertainty of COVID-19”.
“The group is focused on building stronger momentum across each of the businesses, with continued investment in technology and scalability while managing costs effectively,” he concluded.
BNK appoints interim CFO
The group has also announced the appointment of Malcolm Cowell as its interim chief financial officer.
Mr Cowell replaces Jussi Nunes, who is set to leave the group on 4 September 2020.
The interim CFO served in the role prior to the BNK’s merger with Finsure in September 2018, after which he has served as general manager of Finsure, charged with overseeing the statutory and regulatory reporting obligations of the group.
Mr Cowell was also appointed company secretary on 1 March 2017.
Prior to joining BNK, Mr Cowell held roles with the Commonwealth Bank of Australia and KPMG.