CUA is making a significant investment in its business, as it seeks to regain momentum in the ultra-competitive home loan market.
It is also rolling out a new loan origination system “to enable faster decision-making and a smoother home loan process”.
CUA has maintained its credit union brand long after others in the sector have become mutual banks, but later this year it will rebrand as Great Southern Bank.
CUA chief executive Paul Lewis said: “We are excited to be rebranding this year, which will make it easier to reach more Australians who may not have understood what a credit union does.”
Lewis said tough economic conditions and investment costs of the loan origination system and rebranding will hit the bottom line in the second half.
The value of CUA’s loan book fell by 1.5 per cent to A$13.4 billion in the December half. At the same time member deposits grew by 3.4 per cent to $11.4 billion.
It achieved net growth of 11,000 in banking and insurance customers. Total customer numbers are around 580,000.
Net profit rose 26.5 per cent to $26.9 million, compared with the previous corresponding period. Assets increased 1.5 per cent to $16.4 billion and capital adequacy increased 39 basis points to 14.77 per cent.
Lewis said 87 per cent of CUA’s 4700 members offered loan repayment deferral have resumed loan repayments.
CUA did not make any additional COVID provisions in the half.