Teachers Mutual Bank Limited announces annual result
Teachers Mutual Bank Limited has today released its Financial Year 2024 result.
Highlights
- Home loan portfolio increased by $579 million, or 6.7%, to $9.3 billion
- Retail deposits increased to $9.1 billion, up 9.1% on last year
- Net assets grew by 3.5% to $727 million
- Net profit after tax, $24.5 million
- Net interest margin down 0.05% to 1.65%
- Customer growth of 3.4% to 242,000
- Topped the Roy Morgan Banking Customer Satisfaction survey with a 95% score*
In announcing this result, CEO Anthony Hughes said the bank had performed well and remains focused on delivering sustainable growth and positive outcomes for its customers.
“During the year, our home loan portfolio grew 6.7% to $9.3 billion; representing growth at 1.4-times system.
“In an economy where the dream of home ownership is becoming tougher for the average worker, especially in our customers’ vocations of education, health, and emergency services, it was a pleasure to help 8,355 customers into homes during the year.
“Customer deposits remained strong as we reached $9.1 billion in retail deposits, representing growth of 9.1% on last year,” Mr Hughes said.
Customer deposits contributed to the majority of the funding for the year and supported the liquidity position for Teachers Mutual Bank Limited.
“Our capital remains sound at 15.59%; above the minimum APRA prudential regulatory requirements and highlights the value we place in investing our capital in strategic projects to support our growth, and benefit our customers,” Mr Hughes said.
Mr Hughes noted that while net profit decreased, the result was strong and in line with forecast.
Here for our customers
During the year, an industry partnership fast-tracked the bank’s ability to implement a security feature to help protect customers from falling victim to scams. The feature, which indicates if account details look right when a customer transfers money to a payee for the first time, was a first for customer-owned banks.
“The implementation of this new security feature is a demonstration of innovation in our bank and our willingness to work with industry to benefit our customers,” Mr Hughes said.
In a continuing trend towards digital banking, less than 2% of transactions during the year were cash withdrawals. However, customers continued to value being able to speak to a real person for complex banking matters.
“To maintain our high levels of service in our 100% Australian-based contact centre, we grew the team by 16% during the year which enabled us to answer calls 13% faster.
“I’m confident that it’s these customer-focussed actions that led to Teachers Mutual Bank topping the Roy Morgan Banking Customer Satisfaction scores* this year with a score of 95%,” Mr Hughes said.
Banking with purpose
Delivering on our purpose of banking for good, for those who do good, this year we:
- maintained our B Corp Certification, a third-party verification of our commitment to ethical social and environmental performance.
- were the only bank named by Responsible Investment Association Australia (RIAA) as a Responsible Investment Leader, for the third consecutive year.
- progressed our commitment to a national car fleet of 100% electric vehicles, purchasing the first 12 from an intended 34, and
- continued our support of Credit Union Foundation of Australia Children’s Financial Literacy program, supporting the delivery of a grassroots approach to increase the financial literacy of six-to-11 year-old children and encourage critical saving habits that have lifelong, and meaningful impact.
* Roy Morgan Report: Customer Satisfaction Consumer Banking in Australia, May 2024 – Main Financial Institution category.
View our Annual Report 2023-2024