Continuing this year’s theme of exceptional profits among leaders in the mutual banking sector, G&C Mutual Bank annual report released on Friday showed a return on equity of 8.3 per cent.
G&C’s net profit for G&C 71 per cent to A$11.5 million.
The bank’s net interest margin widened to 2.35 per cent from 2.17 per cent.
“Our efficiency is clearly displayed by our cost to income ratio of 58 per cent, which is a sector leading outcome,” CEO Rosanna Argall told members.
“Given the challenging economic conditions that we that we confronted throughout this year, our 2022/2023 financial year results have exceeded expectations,” she said.
Loan growth in FY2023 moderated to 7.5 per cent, still above system, while deposit growth was 12 per cent.
The employee expense line lifted by nine per cent, a muted rise in comparison with many of G&C’s peers this year.
“The recent merger announcement with Unity Bank provides an exciting opportunity to combine the strengths and proud histories of the two organisations in a ‘merger of equals’ which will allow us to offer improved products and services for our combined membership base,” Argall told Banking Day.
“An exceptional year of performance behind us and an exciting year of growth and collaboration ahead.”
The merger with Unity Bank is likely to be consummated in March 2025, with G&C members asked to vote on the merger at the AGM late next year.