Victoria Teachers Mutual Bank hopes to arrest its margin decline over the coming financial year, with the bank aiming to source more funds from the wholesale market at rates cheaper than deposits.The bank said yesterday that it had earned a net profit of A$6.14 million in the year to June 2013. This was down from $9.7 million in 2012.The underlying profit was $11.5 million, after allowing for the write down on its new head office in Camberwell. This was 19 per cent up on the previous year.The bank's annual review put the return on average assets at 0.37 per cent, about half the level of the previous two years.William Wolke, the chief executive, said ROA "would have gone up" without the building write down."We expect ROA, on an underlying profit, to be up again [next year]; back to [that of] June 2012, and higher."Wolke said the bank's interest margin was 2.28 per cent in 2013, down from 2.46 per cent in 2012, with the rate of decline being stemmed last year.He said the bank was budgeting for a margin of 2.23 per cent this year, with the mutual making use of its recently obtained Baa1 long-term issuer rating, and a Prime-2 short-term issuer rating from Moody's Investors Service, to issue certificates of deposit.In the mutual's annual review, Wolke explained that the bank "continued to deliver value to members throughout the year, with very competitive rates being o?ered on both deposits and loans."The bank more or less matched system growth on both sides of the balance sheet, with deposit growth of 6.8 per cent and loan growth of 7.5 per cent. Total assets increased by six per cent.Customer numbers increased by 3600.Graeme Willis, a former chief risk officer at National Australia Bank, joined VTMB's board this year.