Bank Australia has reported a bumper year for new lending and strong deposit flows, but it has suffered a fall in earnings after increasing spending on marketing, branding and technology.The bank (formerly bankmecu) wrote A$742.8 million of loans in the year to June - an increase of 46.4 per cent over the previous year. The loan book grew by 9.8 per cent to $2.7 billion.Deposits grew by 10.3 per cent to $3 billion. Growth in both loans and deposits was above system.Net interest revenue was up nine per cent to $75.6 million and the net interest margin was up one basis point to 2.22 per cent.However, the bank's cost-to-income ratio increased from 59.7 per cent to 64.3 per cent and net profit was down six per cent from $25.5 million in 2013/14 to $23.9 million in the year to June.Bank Australia managing director Damien Walsh said higher costs were a result of increased spending on marketing and technology, as well as a television campaign to promote the brand change in August.Walsh said the increased marketing budget contributed to the strong growth in home lending, which was all organic. The bank is working on a move into the broker channel this financial year.The bank attracted a record number of new customers, with 60 per cent of new customers aged 39 and under.