Solid first half for smaller banks
TWO of the country’s smaller banks have reported solid firsthalf results as Australians looked to home ownership to insulate themselves from the unfolding rental crisis.
Bundaberg-based Auswide Bank this week reported annualised loan book growth of 13.1 per cent to $4.108bn while Brisbane-based Great Southern Bank issued $1.89bn in new home loans in the first half. Auswide Bank chief executive Martin Barrett said there was still a lot of confidence in the housing market as Australians “prioritised their own castle”.
“Concerns of mortgage stress have not been our experience to date,” said Mr Barrett.
“We are sitting at record low arrears. Historically, we’ve always seen arrears pick up a little after Christmas and this is the first time we haven’t seen that which is quite extraordinary.
“So despite cost of living pressures and despite rising interest rates we are not yet receiving phone calls from customers advising they need support or help.”
The bank was seeing record home loan activity, with about 60-70 per cent being refinances.
“This is unlike 12 months ago when 60-70 per cent of loans were new,” Mr Barrett said.
“Refinance activities are up about 30 per cent over the course of the last 12-18 months which is quite significant as people are looking for better deals in this kind of environment where interest rates have increased and continue to do so.”
Auswide’s net profit increased 3.7 per cent to $14.1m while annualised customer deposits increased 12.4 per cent to $3.248bn.
Great Southern Bank managing director Paul Lewis said 18,945 new customers joined the bank in the six months to the end of December, 6.6 per cent more than the same time last year. Net profit rose to $31.65m.
He said the bank’s successful rebrand from CUA had helped it attract more first home buyers and younger savers, with an average age for new customers of 27.