The customer-owned lender has reported stronger profits and balance sheet metrics as it navigates an increasingly competitive landscape.
Police & Nurses Limited Group (PNL) – the customer‑owned banking group behind P&N Bank in Western Australia and BCU Bank in NSW and Queensland – has posted a 16 per cent lift in half‑year net profit after tax to $15.8 million for the six months to 31 December 2025, supported by loan and deposit growth, firm margins, and low arrears.
The bank said the result reflected a combination of careful net interest margin management, measured balance sheet expansion and tight cost controls.
Introducing the result, managing director and CEO Andrew Hadley said it underscored both financial resilience and a clear strategic focus.
“The half‑year results reinforce the organisation’s financial strength and customer focus,” he said.
Hadley went on to emphasise the sources of the bank’s performance, pointing to recent operational and technology changes.
“These results reflect our continued focus on enhancing customer experience, delivering sustainable growth across retail and business banking, and leveraging the technology investments and business improvement initiatives delivered in recent years.”
Growth in loans, deposits, and capital
Across P&N and BCU Bank, the loan portfolio increased 4.2 per cent over the half to $8.2 billion – indicating steady demand in both home lending and business banking.
Customer deposits meanwhile rose 5.5 per cent to $7.5 billion, reinforcing a funding base anchored in member deposits.
Credit quality remained a notable bright spot with arrears of 90 days or more sitting at just 0.16 per cent – below broader industry averages during a period of elevated cost‑of‑living pressures.
The group’s capital ratio increased to 15.06 per cent, providing a sizeable buffer above regulatory minimums.
Reflecting on the broader trajectory, Hadley said the first‑half result built on the progress made in recent years.
“The first‑half results build on our performance by delivering better outcomes for our customers, people, and the long‑term financial strength and sustainability of the business,” he said.
Customers, people, and branch footprint
Membership continued to edge higher over the period, with customer numbers increasing by 3,114 to more than 205,000 across the two brands, a 3.5 per cent rise.
Behind that growth, customer satisfaction remained at about 85 per cent.
Internally, engagement metrics were also robust, with staff engagement standing at 79 per cent, while 90 per cent of employees said they felt they “belonged at work”.
The organisation now operates 27 branches across Queensland, NSW, and Western Australia and employs 608 people – maintaining a physical network to complement its digital channels and support complex needs such as home and business lending.
Hadley credited the contribution of employees to the result, signalling the importance of culture in the group’s strategy.
“These results are a credit to our talented, engaged, and passionate people who work tirelessly to support our customers and communities,” he said.
Outlook and strategic positioning
Looking ahead, Hadley said the group was confident about the remainder of the financial year – highlighting both opportunity and caution.
“We are well-positioned to deliver on our full-year ambitions and have delivered a strong foundation to leverage in the years to come,” he said.
The results come after PNL confirmed in late January that it had concluded exploratory merger discussions with Great Southern Bank (GSB) and that the merger would not proceed.
The proposed deal would have formed one of Australia’s largest customer-owned banks, with total assets of around $30 billion.
[Related: Bank merger ‘not in best interests of customers’]
