ME up but profit down

THE industry superannuation fund-owned ME Bank has suffered a 19 per cent fall in fullyear profit despite strong growth in lending and a surge in customer deposits.

The unlisted bank posted a net profit of $61.9 million for the year to June, down from $76.8 million the previous year.

Its result was hampered by writedowns including hedging losses, decommissioning technology and a $8.9 million loss from the sale of its business loans and banking portfolio.

Interest income was down almost 5 per cent at $1.16 billion ($1.22 billion the previous year) although after paying out less interest, net interest income was up 7 per cent to $336 million.

ME chief Jamie McPhee said there had been strong growth over the year, including a 12 per cent increase in the home loan portfolio.