Great Southern Bank CEO Paul Lewis
Great Southern Bank grew its mortgage book by 6.6 per cent in the year to June, with this above system growth largely due to its penetration of the first home buyer market.
The bank originated A$4.47 billion of home loans during the year to June, including $1.37 billion to first home buyers.
First home buyer share was 2.9 per cent – around three times Great Southern’s overall mortgage market share.
The bank has pursued a younger membership since it changed its name from CUA in 2021, recognising that young people did not understand credit unions and, as a result, its membership was ageing.
Before the name change, the average age of customers was 50. Earlier this year the bank reported that it had come down to 48.
This is thanks to the introduction of products like its high interest savings account Youth eSaver and its active participation in the Home Guarantee Scheme, which supports first home buyers with low deposits.
Great Southern reported a 19.9 per cent increase in net interest income to $348.8 million in the year to June. Operating expenses rose 1.6 per cent to $276.5 million.
The credit impairment charge rose from $3.1 million in 2021/22 to $7.1 million in the year to June.
Net profit was $44.5 million, compared with $70.5 million the previous year. The 2021/22 result included a one-off $58 million gain from the sale of CUA Health.
Member numbers grew 5 per cent to 401,000.