Defence Bank reported what it called “its best result yet” for FY2021, a net profit of A$13.9 million, a rise of 38 per cent.
Footings growth was modest by the standards of some mutual banks this cycle, with lending growth of 8 per cent taking total loans to just under $2.5 billion, and deposit growth of 6 per cent.
The banks’ net interest margin lifted from 1.84 per cent in FY2020 to 1.98 per cent in FY2021.
Asked to reflect on the momentum for mergers evident at the top of the sector in recent months, David Marshall, Defence’s CEO, said: “There’s not always benefits in scale … we’ve got a fairly unique market.
“With mergers, you do spend a period of time being distracted.
“I’m not necessarily a believer in mergers being a driver in sustainability and viability,”” Marshall said.