Community CPS Australia reports strong interim results
Announcement posted by Beyond Bank Australia 27 Feb 2012
The credit union reported a net profit after tax of $14.32 million, an increase of 17.8 per cent on the corresponding interim result last year, as well as a depositgrowthof 5.3 per cent and a 10.2 per cent increase in total assets.
Community CPS chief executive officer Robert Keogh said the strong national performance was a testament to the diversity of the credit union’s business as well as a disciplined approach to cost andincome levels and commitment to its strategy.
“Community CPS has delivered solid results for the first six months of the financial year, and the fact that we have recorded a strong increase in our net profitafter tax says a lot about our business model in what has been a very tough market for financial institutions,”said Mr Keogh.
“We saw a decrease of 6.5 per cent in overall new lending, caused by stalling consumer demand for lending products due to the volatile financial climate.
Thereis a strong focus among consumers on either repaying existing debts or saving money for the coming months, which is reflected in our deposit growth."
“We’re particularly pleased about our increased net profit after tax, as this allows us to reinvest the funds into the credit union, offering our members better interest rates, lower fees and improved services."
“We expect that the remaining six months of the financial year will see a contraction of interest margins in line with increased competition and an expected increase in funding costs. The direction of interest rates on the back of the Reserve Bank of Australia’s actions will also have an impact. If interest rates continue to fall, it will provide a welcome relief to mortgage holders in times of rising living cost."
“Increased competition in the sector is expected and this should be good news for consumers. Our goal of creating and returning value to our customer owners will continue to be our focus.”
ABOUT THE COMMUNITY CPS AUSTRALIA GROUP
The Community CPS Australia Group is one of the largest customer owned financial institutions in Australia, with assets under management approaching $4 billion. The credit union employs 585 staff across 48 branches,servicing more than 180,000 members. Community CPS is located in South Australia and the Australian Capital Territory, and operates as Wagga Mutual Credit Union in Wagga Wagga, Companion Credit Union in the Hunter Valley and United Community in Western Australia. The Group comprises activities in banking, the community (through the Community CPS Foundation) and professional services (wealth management, tax andaccounting services via Eastwoods). For more information visit www.communitycps.com.au