Bank backs lending in tough finance market
TOOWOOMBA’S Heritage Bank says its lending products have performed well in a challenging banking market, despite a drop in half-year net profit.
Heritage Bank reported a profit after tax of $23.83 million, down by more than five per cent from the corresponding six month period.
In contrast, retail deposit growth increased by 85 per cent to $357 million while loan approval values improved slightly to $979 million.
Heritage CEO Peter Lock said the company’s half-yearly results projected positive growth potential.
“We have delivered a strong and balanced set of results for our members in a challenging market,” he said.
“The excellent growth in our retail deposits has had a positive impact on our margin.
“We’ve also continued to be very disciplined in managing our expenses and very effective in capital allocation decision-making.
“We’ve built good momentum in our lending in recent months, after a sluggish start to the period, and we’re looking to maintain that for the rest of the year.
“Our profit result is solid, balancing the need to generate capital to support future investments while still delivering great value on products and services for our members.”
Mr Lock said the company’s investment into Sydney was another sign of the lender’s position in the market.
“We opened new branches at Castle Hill in October last year and at Parramatta in December,” he said.
“They have performed extremely well in their first few months and the response from the people of those areas has been outstanding.
“Their success demonstrates the appeal of Heritage’s people-first philosophy and the willingness of banking consumers to embrace a Queensland-based brand.”
Total consolidated assets increased to $10.254 billion at December 31, up from $10.008 billion at 30 June, while total loans under management reached $8.571 billion.
Heritage recorded a capital adequacy ratio of 14.78 per cent and a liquidity ratio of 15.37 per cent by the same period.
Heritage chairman Kerry Betros said the strong performance held up well.