Loan rush limits Gateway's profit

Gateway Credit Union met its target for super-charged asset growth but missed a profit target in the year to June 2012.

The credit union's annual report said home loan receivables increased by 18 per cent, to A$736 million, over the year. Assets increased by 18 per cent.

Gateway has sourced the bulk of its new business over the last two years from Yellow Brick Road. Mortgage Choice also became an introducer, at the end of 2011.

The credit union said its net profit fell by more than a third, to $1.7 million.

Writing in Gateway's annual report, the chief executive, Paul Thomas, said that the easier monetary policy over the last year "wiped $1.4 million from our bottom line".

The credit union had to find savings in its operating budget and defer capital expenditure to minimise the fall in profit.

Gateway funded 80 per cent of its A$112 million increase in lending over the year through a warehouse provided by Westpac.