The banking group has seen its book grow to over $21 billion, noting its lending upgrades are helping it accelerate approvals.
People First Bank – the mutual banking group comprising People’s Choice Credit Union and Heritage Bank since 2023 – has revealed that it grew its residential lending book by 4 per cent over the financial year ending 30 June 2025, taking it to over $21 billion for the first time.
Over FY25, the banking group began turning off some of the former branding as it transitioned to become unified under the People First Bank brand and ceased accepting new loan applications through the Heritage Bank brand in January.
Nevertheless, the group noted strong uptake of the People First Bank mortgage products, which have additional features such as fee-free offset accounts on basic variable home loans, redraw facilities on fixed-rate home loans, and no limits on extra repayments on fixed loans.
According to the consolidated financial accounts, the vast majority of its book is for residential loans ($20.4 billion), with around $16.5 billion being for owner-occupied mortgages.
It helped 11,659 people buy their own homes, of whom 644 were first home buyers.
The personal lending book (and other loans, including the expanded green car loan options) fell over the year, however, dropping to $413 billion from $453 in FY24. The bank had 5,757 customers access personal loans in FY25.
Business lending also makes up a dwindling proportion of its book, ending FY25 at $140 million (down from $186 million in FY24).
Over FY25, total assets increased by 3 per cent, from $24.5 billion to $25.3 billion.
The banking group said loans and advances increase in every state and territory bar the Northern Territory over FY25, with the bulk of its book being for loans in Queensland, South Australia, Victoria, and NSW.
It now has more than 750,000 customers, of whom 45,816 were new in FY25. People First Bank opened almost 147,000 transaction, savings, and term deposit accounts over the year.
The bank noted that its lending growth has improved as it continues to deliver on the merger commitments that are reshaping People First Bank, including improved banking platforms.
A pilot of its new mobile and internet banking platforms is currently in the final stages of piloting by employees, ahead of launch early next year, alongside a redesigned website.
The banking group is partnering with technology giants such as Backbase, Salesforce, Simpology, and Fiserv with the aim of building “a best-of-breed suite of cloud-based platforms that will deliver outstanding digital experiences and security, while enabling the use of innovations such as AI”.
Upgrades to lending systems are also reportedly making it simpler and faster for customers to buy a home (though details of what this entailed were not disclosed).
Speaking of the FY25 figures, CEO Steve Laidlaw said: “These results show that we are delivering for customers while building for the future.
“By combining a clear purpose with technology investment, People First Bank is well placed to grow as a strong and sustainable customer-focused bank.
“We are investing in platforms that will give customers a simple, secure, world-class banking experience.
“These investments also make us more adaptable to a rapidly changing market.”
Thirty-four branches were refreshed with the People First Bank brand during the year, with only three People’s Choice sites still to be updated before the rebrand of Heritage branches begins in 2026.
Laidlaw said the year carried historic significance as People First Bank marked its 150th anniversary.
“This year, we made strong progress. While we celebrated our history, our focus is firmly on the future – building the very best digital banking capabilities, and supporting our customers, communities, employees, and the environment,” Laidlaw said.
“These are the foundations that will ensure our success as a modern, purpose-driven bank that Australians can rely on for generations to come.”
Over FY25, People First Bank reported net profit after tax of $44.1 million, up 7 per cent from $41.4 million.
It contributed $8.8 million in community support nationwide through its Foundation, Community Lottery, local partnerships, and community branches.
[Related: Heritage Bank stops taking new customer applications]
