Brokers real success story for The Co-operative Bank
Mortgage advisers have played a big part in helping The Co-operative Bank achieve a 16% increase its net profit to the year ending March 31.
Friday, June 3rd 2016, 4:28PM
It said profit increased from $8.9 million a year earlier to $10.3 million.
Chief executive Bruce McLachlan says the bank has managed to grow its lending book at more than two times system growth for the second consecutive year.
It is up 16% to $1.8 billion and the bank has had two strong months in start of the financial year.
The bank is focussed on the medium term and consistent performance across the market rather than short term promotions and pricing changes.
McLachlan described it as a “pretty strong result” especially when compared to other recent results.
He says the bank is keen to continue its growth. Its also announced today a $30 million tier two capital raising which would help it continue its growth.
This amount of capital would fund around $400 million in new loans, he said.
The Co-operative Bank aims to originate around one third of its new business through mortgage advisers. In the past year it exceeded this target.
McLachlan said the bank had received “great support” from advisers and the business they wrote was “really material” to the bank.
“(The Co-operative Bank) is a very viable alternative to the major banks,” he says and it strengthens an adviser’s portfolio.
“Our growth in the broker market is one of our real success stories,” he said.
During the year The Co-operative Bank added 15,000 new customers taking it to more than 147,000, who were paid a rebate of $2.1 million, up from $1.8 million a year earlier.
McLachlan says the rebate is important to customers and can range from $10 to $600 each depending on how much business they have with the bank.
Customers continue to get their annual rebate as long as they are with the bank.
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