South West Slopes climbs mutual rankings 20 November 2014 5:30PM Shereel Patel South West Slopes Credit Union - operating in the region around Dubbo, Young and Wagga Wagga - may be a standout mutual in 2014, reporting a bank-like return on average assets of 0.99 per cent last year, well above the sector average of 0.53 per cent. The credit union recorded a net profit after tax of A$1.3 million, asset growth of $8.7 million (or seven per cent), and deposit growth of $7.2 million (seven per cent). However, loan balances fell $5.8 million or six per cent. SWSCU also flagged a banking platform upgrade in the near future.General manager Steve Elsley said the record ROA was achieved through tight control of expenses."You might notice that our expense to income ratio is down around 70 per cent, where the sector average is closer to 80 per cent. We are assisted in this slightly by being regional where wages pressures are not as competitive as in the city," he said. Elsley added this was "not to say that the credit union pays less than the award and in most cases we are slightly above. The more senior positions are obviously not as competitive."He added that building the loan book was becoming more difficult, with existing borrowers concentrating on debt reduction while interest rates were low, while his region has not experienced the growth of home prices that city areas had seen, and potential borrowers remained cautious. This drop in lending was part of a trend being experienced by many financial institutions, said the credit union's chair, Brian Page.Page also griped that "some members" do not use SWSCU as their prime financial institution. "Perhaps some consider the major banks more 'secure', that they offer a wider range of products and services or a better 'deal'," Page wrote in the annual report. Page also hinted at collaboration with local mutual ADIs, citing dialogue with credit unions in the Central West and Riverina."These relationships may be expanded in the future to the mutual benefit of all," he said.One big project facing the South West Slopes Credit Union over the next 12 months is the migration of the current banking platform to the Ultradata platform, used by the majority of credit unions. The credit union's management made the decision to migrate from the Lynx banking platform after the supplier of their existing technology advised that they did not intend to support further development past 2016.