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WA bank plans east-coast expansion

by 10 minute read

Strong growth in lending activity is encouraging a small regional bank to expand interstate, relying solely on the third-party channel to achieve this growth.

ASX-listed Goldfields Money CEO David Holden told The Adviser that the regional bank, which increased its loans under management by 23 per cent in the 2014-15 financial year to $145.8 million, is looking at expanding outside of its WA heartland and into the east coast.

“We are looking to move interstate in the short to medium term, probably into the Brisbane and Melbourne regions,” Mr Holden said, adding that Sydney is not currently on the group’s radar.

“We won’t be adding any more branches, we are focused on our online presence and the third-party channel.”


Goldfields Money last week announced its full-year results, with after-tax profit (excluding an impairment loss from software development costs) rising 50 per cent in the year to June 2015.

Asked how the bank has achieved such growth despite a soft WA housing market and the ongoing economic fallout from the mining investment wind-down, Mr Holden said “WA has still got a lot of houses – it just comes down to managing risk”.

“Our lending is about five to 10 per cent SME and 80 to 90 per cent resi, plus a little bit of personal,” said Mr Holden.

“We are continuing to focus on building capability and investing in the business to provide the foundation and opportunities for enhanced earnings growth as we progress out strategic objectives.

“A component of these strategic objectives is to develop and implement arrangements with strategic partners.”

Goldfields Money traded as Goldfields Credit Union since its 1982 inception, until it was demutualised and listed on the ASX in May 2012. The group operates three branches in WA, with locations in Perth, Esperance and Kalgoorlie.

[Related: NAB strives for 'next level' in mortgage settlements]

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