People First Bank releases inaugural half-year results

Mutual Bank People First Bank – formerly Heritage and People’s Choice – has released its first half-year results (six months to 31 December 2023) following the initiation of its new brand.

During this period, People First Bank reported a lift in its residential loans portfolio of $550 million, representing an annualised growth rate of 6 per cent, above system growth of 4.2 per cent over the same period.

Total loans and advances rose to $19.64 billion, an increase of 2.7 per cent on the six months to 31 December 2022.

Speaking to Mortgage Business, senior corporate affairs lead at People First Bank, Jonathan Revitt, confirmed that more than 3,100 home loans were settled through the broker channel, totalling $1.43 billion.

Preceding this, the mutual bank raised $400 million from the capital markets via a three-year medium-term note (MTN) transaction in the largest deal of its kind by an Australian mutual bank for a senior unsecured floating rate transaction.

The issue was priced at 3m BBSW + 160 bps, with total bids by investors exceeding $600 million prior to the final sizing of the transaction.

Nearly 60 investors participated in the transaction, with more than half of the issue taken up by domestic fund managers.

Furthermore, People First Bank reported an increase in total consolidated assets by 5.3 per cent to $24.59 billion and net half-yearly profit after tax of $31 million.

Retail deposits also rose by 5.2 per cent to $18.29 billion over the six months to December 2023.

People First Bank chief executive Peter Lock said this was an “extremely pleasing set of figures” representing a “watershed moment” for the organisation.

“They show we’ve successfully navigated the most crucial period post-merger and we can now fix our sights on the future – to be a new, purpose-driven bank for all Australians,” Lock said.

“Thanks to our absolute focus on our members, we’ve maintained strong growth across deposits and loans.”

Furthermore, the mutual bank reported an increase in net membership by a further 13,586 across the half-year period.

“We know we have the products and service that people want,” Lock continued.

“Now, as we introduce our new brand, we have the opportunity to tell our story to a broader, national audience and attract even more people who want a bank that’s focused on them and not billion-dollar profits.”

The new People First Bank logo is being introduced through its “high-profile community initiatives” including the People First Bank stadium on the Gold Coast, its Western Bulldogs AFL team partnership, and its national charitable Foundation and Community Lottery.

Its two existing retail brands – Heritage and People’s Choice – still remain in the market while the brand transition is fully completed.

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