New England net profit after tax increased 33 per cent to $3.9 million for financial year 2007, driven by strong lending and a 0.9 per cent return on assets.The NPAT percentage increase was skewed somewhat by a large one-off database conversion cost in financial year 2006.The fully verified residential lending book increased 18 percent, which accounts for around three quarters of the $400 million lending book, with personal loans up 12 per cent and the small commercial component increasing by a third.Kevin Dupe, CEO New England Credit Union, said that the New England area is not drought proof, and has been less disadvantaged than areas further west."We haven't seen great deterioration in the credit quality out there, but we have been more discerning in our lending the further west we go, and that is not a reflection on the people, but a reflection on the times."We have tried to be prudent in our lending to not overburden people with debt, and to add to other problems that they have (drought)."NECU has virtually no agribusiness, and very little rural lending as Dupe identifies this is not an area the credit union has experience in.Total loan portfolio delinquencies were 0.4 per cent, which is reasonable considering the impact of the drought throughout several towns in the branch network. The deposit book increased a strong 18 per cent to $420 million, with two new branches opening for the year bringing the total network to 21.NECU has around 50,000 members, with annual net member growth around 8 per cent.