The customer-owned bank has seen “strong” year-on-year growth in both its mortgage settlements and overall loan book while maintaining high customer satisfaction.
Bank Australia has released its 2019 financial results, which showed an increase of 22.45 per cent in mortgage settlements by the bank from 2018, with $1.46 billion in loans funded over the year.
Additionally, the value of Bank Australia’s home loan portfolio grew from $4.69 billion in 2018 to $5.23 billion in FY19, an increase of 11.49 per cent.
According to the bank, the significant growth in lending was due to a large number of customers moving from other banks to Bank Australia, and consistent levels of customer satisfaction.
The bank claimed that over 19,000 new customers switched to Bank Australia over the last financial year, and total assets grew by 12 per cent to $6.33 billion, generating a net profit after tax of $22.82 million.
Further, the bank also reported a strong Net Promoter Score of 44.6, with customer satisfaction levels of 88 per cent, which the company said was a reflection of their increased investment in technology, capacity, capability and branding.
Bank Australia’s branding revolves around sustainability and responsible banking, which it carries out through sustainable investment, as well as aiming to source 100 per cent of its electricity from renewable energy by 2020.
Bank Australia’s managing director, Damien Walsh, highlighted this growth, stating that the bank’s clean money branding campaign helped drive its financial performance and customer engagement.
“During 2019, we evolved the ‘bank Australia needs’ brand strategy with the launch of our clean money position, which aims to educate people that money can have either a positive or harmful impact on society and the environment depending on how it is invested,” Mr Walsh said.
“Our customer research tells us that more than 60 per cent of customers are now switching to Bank Australia because of our approach to more responsible banking.
“We have achieved levels of growth well above system while maintaining strong financial performance and competitive pricing to our customers,” he said.
Mr Walsh also predicted what the future of banking could look like, saying: “Looking to the future, all banks would need to pay close attention to delivering customer value while managing their net interest rate margin in an operating environment characterised by historically low interest rates.
“An additional and important consideration is responding to the ever-increasing risk that cyber security represents,” he added.
[Related: One in five consumers to switch banks]
Hannah Dowling is a journalist for The Adviser and Mortgage Business.
Prior to joining Momentum Media, Hannah worked as a content producer for a podcast catering to property investors. She also spent six years working in the real estate sector at a local agency.
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