Industry Super Holdings took a write-down of 20 per cent in the carrying value of Members Equity Bank in its accounts for the year to June 2008, a reflection of the diminished value of all banks and a reduced profit for MEB.The former corporate entity for Members Equity Bank took control of Industry Funds Management and Industry Funds Services in a reverse takeover with effect from the beginning of 2007. That holding company is now known as Industry Super Holdings and the banking business of MEB is now a subsidiary of ISH.The financial statements for Industry Super Holdings show that the funds management business produced most of the profit for 2008.Industry Super Holdings reported an increase of 10 per cent in net profit to $16.39 million for the year to June 2008. However, the reported 2007 profit for ISH included only nine months of earnings for Members Equity Bank and only six months of earnings for Industry Funds Services.The profit for Members Equity Bank fell 37 per cent to $5.8 million. The lower MEB profit partly reflects a $5 million rise in "project expenses", an item separately recorded in the income statement.The financial statements include only $283 million in receivables, with another $17 billion or so off balance sheet. The bank is one of the few to treat securitised assets as off balance sheet under current accounting standards.Home loans under management fell by two per cent over the year to $15.0 billion. The bank had deposits of $875 million at June 2008, a figure that now exceeds $1 billion. Liquid assets are around 30 per cent of liabilities.Industry Super Holdings had acquired Members Equity Bank at a valuation of $536 million at January 2007. ISH drew down the final component of $58 million in committed capital from industry super funds in March 2008.PricewaterhouseCoopers produced a valuation on MEB for ISH of between $443 million and $520 million and a mid-point valuation, adopted in the ISH accounts, of $481 million. The accounts thus show an impairment loss of $113 million on the investment in the bank, which represents a decline of 19 per cent taking into account the additional capital paid during the year.By comparison, the market capitalisation of Suncorp is down by 53 per cent from its 2007 high; Bank of Queensland down by 32 per cent and Bendigo and Adelaide down by 22 per cent.