A combination of subdued demand for financial products and a big outlay on a new core banking system will constrain earnings growth at Credit Union Australia in the current financial year.Australia's biggest credit union yesterday reported a 16.5 per cent increase in net profit for the year to June but warned that a flat result was the most likely outcome in the current year.CUA made a net profit of A$54.4 million. Total assets (mainly mortgages and personal loans) increased by 14 per cent to $9 billion.  The capital adequacy ratio was 13.3 per cent.The group was ahead of system in mortgage lending and deposit taking. Deposits were up 13 per cent to $6.1 billion and mortgage settlements increased 14 per cent to $1.9 billion.CUA's chief executive, Chris Whitehead, said the new core banking system would move from design to implementation this year.Whitehead said one of the advantages of a mutually owned financial institution was that it could take a long term view and forego short term performance if a substantial investment in the business was warranted.He said CUA had no plans to attach the word "bank" to its name, as some mutuals have done this year. "We have a clear differentiation around being an alternative to the banks and we will continue with that approach."In June, members of Maleny Credit Union voted to reject a merger with CUA, against the recommendation of the Maleny board. Whitehead dismissed the suggestion that this was a setback in a credit union market where the pace of consolidation appears to be picking up."It was small. There were some unique features, and the Maleny members were concerned with local issues."Queensland's floods and storms earlier this year had little impact on the Brisbane-based mutual. CUA received 90 hardship applications affecting loans worth $9 million. Most of these cases resulted in repayment deferrals and most are now returning to normal. CUA's impairment charge for the year to June was $3 million. Arrears, at around 0.1 per cent, were down on the previous year.