Heritage Bank CEO Peter Lock
Heritage Bank has recorded an after-tax profit of A$23.2 million for the six months to December, a 3 per cent on the same period the previous year.
Highlight of the result was a $1.1 billion increase in retail deposits over the half, a hefty 210 per cent increase on the $357 million growth achieved in the same period in 2019.
On the flip side loan growth sagged; Heritage reported growth of $60 million for the half, 40 per cent lower than for the same time last year.
In a media statement disclosing the result yesterday, CEO Peter Lock attributed the restricted growth in the total loan balance to higher than budgeted repayment rates, driven by low rates and the effects of the COVID stimulus payment.
He also said the slowdown in loan growth would be reversed, with the build-up in customer deposits putting the bank "in an excellent position to be more aggressive in targeting loan growth through the remainder of the year."
In the same statement, chairman Kerry Betros said Heritage Bank's mortgage arrears rate at December 2020 improved to 0.31 per cent compared to the 0.40 per cent rate recorded at 30 June 2020.
“More than 95 per cent of our members who took up hardship assistance in early 2020 were able to return to normal repayment arrangements after the initial six-month period ended,"Betros said.