Fast pace suits ME
Double digit growth rates either side of the balance sheet look like continuing for ME Bank, an entity that's narrowed its business mix to just six personal banking products.The industry super fund-owned bank ME yesterday reported a net profit of A$61.9 million over the year to June 2017, down 19 per cent from 2016.The full year underlying profit of $85.2 million allows for a loss of $8.9 million on the sale of its business lending arm to RedZed Lending, and IT transition costs and hedging amortisation.In a media release, ME points to a 12 per cent increase in its home loan portfolio, "with net interest margin falling five basis points to 1.50 per cent" - the margin rise better than for many banks in this reporting cycle.Customer deposits lifted 20 per cent.Customer numbers climbed 15 per cent to 420,000.Two thirds of new home loans flow through brokers, five times the level of new business arising from industry funds.