Savings & Loans, Australia's third-largest credit union, yesterday said it recorded an  eight per cent increase in net profit to $16.1 million.Chief executive Greg Connor said: "A continual branch expansion over the last five years is now starting to contribute strongly towards profit."Loan settlements were up 20 per cent on the year. "We are quite proud. Anybody can grow their loan book, but it's the way you do it," Connor said. "We have only had to call on mortgage insurance twice in the last five years".The credit union may start looking for alternative methods of funding due to securitisation becoming more expensive, with Connor waiting until the market calms down before making any decisionsThe credit union has extended the lending product range to include 40 year home loans, a 100 per cent offset account and the family guarantee aimed at getting first home owners a "foot in the door".New branches include three in eastern Melbourne within a year, coming after four new regional sites in Victoria and Northern Territory this year, moving total branch numbers above 30.Savings & Loans 2007 annual results at a glance• Net profit of $16.1 million, up 8 per cent • Assets under management $2.57 billion, up 20 per cent• Deposits $1.58 billion, up 10 per cent• Loan settlements $744 million, up 20 per cent• Capital adequacy 12.75 per cent, a decrease of seven percentage points• Credit quality (write offs to total assets under management) 0.05 per cent, down from 0.06 per cent• Expense to income ratio 71 per cent, flat compared with 2006• Expense to average assets under management 2.35 per cent, down from 2.61 per cent