Mortgage thrust no cover for Auswide
Auswide is producing above average asset growth in Australia's banking sector.Leave out the assets and customers collared from Your Credit Union from May 2016 and the home loan growth rate of Auswide Bank stretches to nine per cent over the last financial year, well above system. With YCU the growth number is 14 per cent, which is double system.This warm rate of growth in loans, aided by mortgage brokers, produced growth of three per cent in Auswide's preferred "underlying NPAT" to A$14.04 million.Statutory net profit for Auswide Bank was $11.7 million, down from $13.6 million.Management pointed to "one-off expenses" of $3.8 million including M&A projects of $2.84 million, $848,000 in branch rationalisation and rebranding expenses, and other professional costs. The M&A burn compares with net assets of around $27 million consolidated from Your Credit Union.Auswide said its net interest margin was stable at 196 basis points over 2016.A payout ratio of 83 per cent sustains a full year dividend of 30 cents. Barrett wrote in his media release that "Auswide's YCU merger has positioned the bank to lead further consolidation in the mutuals sector."