9 October 2018

Teachers Mutual Bank Limited has released its Annual Report today, reporting another year of strong growth across the board with net profit increasing by 14.1% to $31.8 million.    

The bank’s asset base grew by 5.8% to $7.1 billion.  Its solid home loan performance (owner occupied and investment) via first and third party channels continues, growing by 10.49% to $5.4 billion.  This was more than double system growth of 4.97%, and despite the investor lending cap that continued throughout the financial year, which restricted growth in line with the regulator’s expectations.  

Of the bank’s three brands - Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank - UniBank saw the highest growth, consistent with the bank’s strategic plan for that brand.

“In the 3 years since merging, UniBank has grown from loans of $150 million to $753 million,” said Steve James, Chief Executive Officer of Teachers Mutual Bank.

“Our multi-brand strategy is maturing successfully, with UniBank now firmly established, and Firefighters Mutual Bank building its membership.” 

“We will be launching a new brand, Health Professionals Bank, in the early months of 2019, targeting the 1.5 million strong health worker sector.  We will be bringing our experience in niche markets and understanding of key workers’ financial needs to this brand,” said Steve James

The bank will also open a branch in Docklands, Melbourne before the end of the year, adding to its growing national footprint.

Total membership grew to 198,000 by financial year end, and this month passed the 200,000 milestone.

In deposits from households the bank achieved growth of 6.67% (system 5.71%).  Overall strong growth meant better utilisation of surplus capital, keeping capital adequacy at 15.65%.

The bank also conducted a successful Tier 2 capital issuance in September 2017 for $20 million.  

Teachers Mutual Bank Limited has been one of the success stories in the New Payments Platform (NPP), one of the first to be accredited when the platform launched earlier this year.  The bank’s members have responded well, with good uptake and high utilisation rates.    

On the wholesale market, the bank received strong interest in its Medium Term Note Issuance on 2  July 2018, issuing $200 million.

One of Teachers Mutual Bank Limited’s strategic initiatives for 2019 is investment in robotic process automation (RPA).  

“We are introducing process automation through our back office as we aim to boost productivity and deliver cost savings. We have allocated a substantial budget to introduce more AI process and automation throughout the back office,” Steve James said.

The bank continues its ethos of “profit with a purpose”. In FY18, it invested 6.9% of its net profits after tax back into community initiatives, according to London Benchmarking Group measures.  

“Our visible action on community investment and ethical practice is a key reason we’ve been cited as one of the Ethisphere Institute’s World’s Most Ethical Companies for a fifth consecutive year in 2018,” said Steve James. 

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