Investment and Growth Highlight Beyond Bank Australia's 2013/14 Results

One of the nation’s largest customer-owned banks, Beyond Bank Australia, has recorded strong 9 percent business growth and a $23 million net profit in 2013/14 amidst subdued operating conditions and continued reinvestment back into the business.

The organisation, which operates across South Australia, Western Australia, the ACT, Wagga Wagga and the Hunter Valley, improved its profitability, increased its overall assets under management to $4.12 billion and achieved record levels for new lending – up 10.6 per cent to $708 million.

Beyond Bank Australia Chief Executive Officer Robert Keogh said the business had struck a careful balance between growth, strategic investment and a continued commitment to returning value to customers.

“We are readying ourselves for the future with significant strategic investments in our people, infrastructure and systems that will lead to an improved customer experience across multiple touch-points.

“Over the past year we have introduced a new state of the art branch concept, a new website optimised for mobile devices, launched a new range of unsecured and on-balance sheet loan products, completed a strategic merger which expands our footprint in regional South Australia, and made adjustments to our social media presence that will improve online engagement with customers.

“Those investments are being made in an environment where operating conditions remain driven by high levels of competition, soft economic conditions, an increasingly cautious consumer and structural changes across business and Government.

Key financial results for 2013/14 include:

       - New lending for the year reaching a record $708 million – up 10.6 per cent on the previous year;

       - Total member deposits rose 9.6 per cent to $3.3 billion;

       - Capital adequacy increased to 16.7 per cent;

      - Customer satisfaction reached 95.9 per cent.

Strategic business improvements delivered in 2013/14 include:

   - Switching from credit union to mutual bank status and renaming the organisation Beyond Bank Australia on 1 August 2013;
   - Securing an investment grade credit rating from independent ratings agency Standard and Poor’s;
   - Completing a merger with regional South Australian credit union Alliance One to expand the South Australian branch network and add 13,000 customers and $228 million to the balance sheet;
   - Launching a new mobile-optimised website with the customer experience at the forefront of design, that sets the foundations for future enhancements on our website;
   - Introducing a brand new, state of the art digital-focused design at branches in West Lakes, SA, and Singleton, NSW, to improve service delivery.

Mr Keogh said the organisation’s strategy to diversify into wider geographic locations was paying off in the current economic climate.

“While our business continues to grow by 3 per cent in Western Australia and 7 per cent in the ACT, it is at a slower rate than recent years as Western Australians focus on repaying their loans faster and Canberrans take a more cautious approach to borrowing due to the Federal election and plans to reduce the public service,”the said.

“Meanwhile our South Australia and Wagga Wagga businesses began to recover in the 12 months to 30 June, with total portfolio balances in those regions growing 3 per cent and 6 per cent respectively. Growth in our Hunter Valley business has slowed considerably in a reflection of local economic conditions.”

Beyond Bank Australia also continued to strengthen its investment in communities, investing more than $1.98 million in our Community Development Program including grants to groups such as Camp Quality in WA, SA and the ACT, SIDS and Kids in the Hunter Valley, the Wagga Wagga Rescue Squad, Wagga Wagga Women’s Centre, Boundless Canberra and the Western Australia and Hunter Valley Bushfire Appeals.

A further $239,000 was distributed to more than 170 not-for-profit groups nominated as recipients via the Beyond Bank Community Reward Account.

“Building stronger communities will remain a core value of our business and we will continue to work at a grassroots, regional and national level with key community groups to ensure they can continue delivering much-needed services to all Australians.

“We will continue to substantiate our position as the other way to bank driven by a commitment to putting our customer owners first and supporting the communities in which we operate.

“Reinvestment back into the business will continue through 2014/15 in order to enable us to fully implement our customer-first strategy that will see us move towards deep, long-term customer relationships that will deliver improved services, more meaningful relationships, product innovations and increased value.”