Official release of B&E Personal Banking's 2011/2012 results.
18 September 2012
Leading Tasmanian financial institution, B&E Personal Banking, has returned a healthy after-tax profit of $4.15 million for the 2011/12 financial year.
Announcing the annual results today in Launceston, B&E Chairman Lyn Cox said that the result was very pleasing in a falling interest rate margin environment.
"The profit result was underpinned by increased non-interest revenue, a focus on controlling costs and maintaining profitable growth." Mr Cox said.
"While total demand for lending is weaker in Tasmania at present, we were able to increase our market share through our marketing activity and by maintaining competitively priced and featured lending products. Overall loan approvals for the year were $103 million," Mr Cox said.
"Loan retention continued to be excellent, an outcome which we believe demonstrates the good value that our loan products currently offer in the market and the relationship we have with our clients.
"The loan book grew by $22 million to now be in excess of a half a billion dollars at $505 million while total assets grew by $23 million to $634 million. The quality of our loan book continues to be excellent with a very low level of arrears.
"With demand for lending still relatively modest, the need for deposit growth was reduced. Total deposits increased by $20 million to finish the year end at $574 million." Mr Cox said.
"The strong profit result has further strengthened our capital adequacy position from 14.88% to 15.46% which positions us well to be able to support the growth of the business in the years ahead."
B&E Chief Executive Officer Paul Ranson said that operational highlights during the year included the launch of a new website, major renovation of branches at Devonport and Hobart and the establishment of a shared branch operation with the RACT at Glenorchy.
"Looking ahead, we have a number of initiatives to further grow and develop our products and services offering to meet the rapidly evolving needs of today's consumers, along with continuing to invest in broadening our distribution network, introducing new technology and developing our staff," Mr Ranson said.
As a member owned financial institution, B&E continues to be committed to keeping its lending rates as low as possible and providing value for members as opposed to profit for shareholders.
"Our continued success ensures that Tasmanians have a real retail banking alternative to access highly competitive personal banking products from a financial institution that is Tasmanian owned and operated," Mr Ranson said.
To view the 2011/2012 B&E Members' Report click here.