CUA reports strong earnings, mortgage sales growth

John Kavanagh
Australia's largest mutual financial institutions, CUA, has reported a solid increase in earnings for the December half, on the back of strong lending growth.

CUA's net profit for the six months to December was A$25.7 million - an increase of 18.6 per cent over the previous corresponding period.

The credit union made a record $1.1 billion of new loans during the half - an increase of 74 per cent over the previous corresponding period.

The loan book grew by 9.3 per cent to $9.8 billion and retail deposits grew by 10.1 per cent to $7.5 billion. Both rates of growth were ahead of system.

CUA chief executive Rob Goudswaard told The Australian that the strong lending growth was a result of CUA using mortgage brokers more than in the past.

He said the credit union was also starting to benefit from its investment in a new core banking system, which came on line last year.