The banking profit increased at Police & Nurses credit union in 2007, but property is dragging earnings down for the West Australian mutual.Banking profit increased a third to $16.1 million. Group profit fell seven per cent to $19.7 million, due to problems in the property development arm.The booming WA economy powered lending growth of 22.8 per cent.Chief executive Fred Huis said "only a very small portion or our residential lending is either low doc or no doc, and our forecast lending growth range for the current financial year is almost 50 per cent lower at 13 to 15 per cent."We recognise the booming can't continue forever, which is why we are budgeting for more conservative growth this year compared to the last couple (of years)".Police & Nurses have a net new customer growth rate of around 600 per month, which helped increase member deposits by 9.4 per cent, pushing the total past the $1 billion mark, with total assets under management increasing almost 20 per cent to $2 billion.Huis said the property development arm, which usually performs very well for Police & Nurses, suffered delays in planning approvals in development. This slowed sales and damaged group profit.The group consists of the Credit Society, with 15 branches, along with the 100 per cent owned property development arm P&N Landreach, retirement villages Essential Services Homes and Jacaranda Gardens Partnership, and the 65 per cent owned Police & Nurses Financial Planning.Huis said Police and Nurses employ around 300 staff, but have 28 outstanding job vacancies. Management reviews salaries three times a year.Police & Nurses CU 2007 results at a glance • Society's banking business net profit after tax $16.1 million, up 33.1 per cent on financial year 2006• Society's banking business cost to income ratio 64.6 per cent, 4.3 per cent improvement• Group net profit after tax $19.7 million, down 6.7 per cent• Group total loans under management $1,825 million, up 22.8 per cent• Group assets $2,030 million, up 19.8 per cent• Group loans provision for impairment 0.06 per cent, 0.18 per cent improvement• Group member deposits $1,067 million, up 9.4 per cent