Credit for growth

Written on the 16 October 2009

Despite a conservative growth model and a drop in member numbers, Credit Union Australia (CUA) has recorded an underlying after tax net profit of $43 million for last financial year.

Earlier this year, former CEO Rob Nicholls told Brisbane Business News he expected a 10 per cent fall in profits, because with virtually no bad debt the organisation prefers stability over the share-price driven profits expected of banks.

What a difference six months makes to expectations in a volatile market.

Taking on the reins of a solid business model, newly-appointed CEO Chris Whitehead says underlying profit for the year to June 30 rose by more than 17 per cent, along with a similar rise in total deposits.

Whitehead says the results illustrate how well-positioned CUA is going forward, with total asset growth of 3 per cent to $7.7 billion.

“Despite challenging global economic conditions with pressure on interest margins and lower returns on retained capital, CUA has performed well with a 17.2 per cent increase in underlying net profit after tax over the previous year,” he says.

“We saw an increase in bad debts of a mere $200,000, excluding collective provisions, for the entire year regardless of the doom and gloom reported.

“With past-due loans of $6.5 million representing just 0.1 per cent of gross loans, we have a high quality loan book and we are in a strong position.”

He says access and services for members have been boosted with expansion into the 3100-strong rediATM network, as well as the incorporation of Victoria Latrobe Country Credit Co-operative into its operations.

Despite increased customer offerings, CUA’s member numbers declined by 5235 last year but this coincided with a $725 million rise in member deposits.

“As a mutual financial institution, CUA is committed to serving our members and providing a better value proposition than the banks. We will continue to strive to make a change for the better in the lives of our members, staff and the communities we serve,” says Whitehead.


Latest News

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter