Credit Union Australia is on track to implement its new core banking system in the first half of 2013, the group's chief executive, Chris Whitehead, said yesterday."It is going well, although it is very complex and we are not counting our chickens," Whitehead said."We will be one of the very few organisations in the industry with a modern, fully integrated system. It will allow us to have a better understanding of our customers, [to] process business better and launch products faster."The group is installing TCS's Bancs system. CUA reported a net profit of A$50.1 million for the year to June - down 6.1 per cent on the previous year.The fall in earnings was the result of profit on interest rate swaps falling from $6.1 million in 2010/11 to $1.8 million in the last financial year. The group holds the swaps to maturity, so profits and losses will unwind to a net zero position over the life of the instrument.Adjusting for the change in earnings in the swaps, CUA made an underlying profit of $48.1 million - up 4.1 per cent on the previous year.CUA's loan portfolio grew by 3.7 per cent to more than $8 billion. Total assets increased 4.7 per cent to $9.4 billion. Retail deposits increased 9.4 per cent to $6.6 billion.Loan settlements were down $356 million to $1.5 billion. Whitehead said the group turned this around late in the year with some aggressive fixed-rate pricing and the launch of the Rate Breaker Package, a bundled home-loan product with a rate that is one per cent lower than the average rate of the Big Four banks.