30 September 2013

Monday, September 30, 2013

Leading Tasmanian financial institution, B&E Personal Banking, has achieved another year of sound results in 2012/13, returning a healthy after-tax profit of $3.7M despite the challenges of a soft lending market and a falling interest rate environment.

Announcing the annual results today in Launceston, B&E Chairman Lyn Cox said that the result was pleasing given the current challenges facing the Australian banking sector and importantly, positions the organisation well for future growth.

“Our result followed the consistent theme of recent years and was underpinned by a focus on controlling interest margin and operating costs, along with maintaining profitable growth,” Mr Cox said.

 “We are seeing strong competition for lending locally as financial institutions look to achieve credit growth in a soft housing market. Despite these challenges, we increased our market share of total owner occupied housing finance and achieved $100M in loan approvals.

 “Importantly, 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,” Mr Cox said.

“Our loan portfolio grew by $22M, to $528M million while total assets grew by $26M to $660M.  The quality of our loan book continues to be excellent with a very low level of arrears.

“Overall the retail deposit market has remained aggressively priced as retail deposits remain the preferred way to fund loans from a lender’s balance sheet. Against this backdrop, our total deposits increased by $20M to finish the year end at $594M,” Mr Cox said.

“We have further strengthened our capital adequacy position from 15.46% to 18.09% 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 the overall results demonstrate that B&E is continuing to enhance its position as a financial institution of choice in the Tasmanian market.

“Like many industries, the banking sector is undergoing rapid change. For us, we are continuing to experience a major shift in the way in which our clients bank with us, as they embrace digital channels, such as mobile banking, over more traditional channels, such as branches,” Mr Ranson said.

“In response to this we are broadening our online capability and introducing new technology, products and services while continuing to invest in the development of our people and in transitioning our retail branch network to sales and information centres.

“Highlights for the 2012/13 year include the launch of a B&E Smart Phone App and further enhancements to our internet banking platform. We also introduced a new advanced fraud monitoring system covering all transaction channels and invested more than $500,000 in the redevelopment of our Launceston Retail Branch,” Mr Ranson said.

“We remain clearly focused on being the financial institution of choice for all Tasmanians.” 

To view the 2012/2013 B&E Financial Year in Review and Annual Report 2012/13 click here.

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