Credit unions commit to Cuscal to 2012

Cuscal Limited, a provider of banking and fund management services to credit unions, yesterday reported an essentially flat profit for the financial year.

Pre-tax profit increased to $25.5 million in the year to June 2007 from $25.1 million in 2006. Net profit increased to $17.7 million from $17.6 million. Cuscal's return on equity increased marginally to 10.2 per cent from 9.9 per cent.

In a media release Cuscal said "operating performance was impacted by non-recurring costs associated with strategic initiatives as Cuscal widens its revenue base.
 
"Restructuring the business and re-negotiating long term contracts on behalf of our existing customers has required that Cuscal spend money to build a platform for future growth."
 
"Those investments have been made without impacting the dividends we are paying our shareholders."

Cuscal said "all 117 credit unions that had committed to being a part of Cuscal's buying group for transactional banking services executed contracts with Cuscal until 2012", which could be tough news for those seeking to poach customers.

Cuscal's other customers include Home Building Society, specialist deposit-taking entities, mortgage managers and finance companies.