By: Staff reporter
Heritage Building Society has today announced a net profit before tax of over $42 million for the 09/10 financial year, its 11th consecutive year of record profits.
Heritage chairman Brian Carter said the results showed that Heritage had proven itself an enduringly strong and reliable alternative to the big banks.
“Delivering 11 consecutive years of record pre-tax profit is testimony to the enduring strength of the Heritage approach. That does not happen by accident – it’s a direct result of strong leadership and a focus on providing exceptional value to our members,” Mr Carter said.
The strong result for the last financial year represented a 17.9 per cent increase over the previous year.
Heritage’s after tax profit was $29.89 million, an increase of 17.2 per cent from the previous year.
According to Mr Carter, the federal government’s wholesale deposit guarantee assisted in helping the lender to continue its solid growth momentum despite tough economic times.
“With the wholesale funding market tight, we accessed the federal government’s wholesale deposit guarantee to raise $680 million in 2009/10,” he said.
“We also secured $50 million in capital through the Heritage Notes issue – the first ASX listed debt transaction by a mutual ADI in Australia.”
According to Heritage chief executive officer John Minz, the lender’s continued low mortgage arrears rate gave customers confidence in the Society’s financial stability.
“The Society’s mortgage loan arrears greater than 30 days sat at just 0.33 per cent at 30 June, which would make us the envy of our competitors even in the most buoyant periods, let alone the difficult economic times that we have been experiencing,” Mr Minz said.