RACQ Group CEO David Carter
RACQ is setting out to double the returns it earns from its banking division.
The banking division of RACQ produced a surplus of A$8.2 million over the year to June 2023, up from $3.0 million in FY2022.
The improved banking profit was earned on the back of very little growth, with growth loans at June 2023 of $2.2 billion up 3 per cent from 2022.
Deposits were stable at $2.1 billion.
“A little under 100,000” RACQ members have a banking product, group CEO David Carter told Banking Day.
This compares with around 60,000 members of QT Mutual Bank when RACQ absorbed the former Queensland Teachers Credit Union six years ago.
“You don’t want a listed bank-like ROE,” he said.
“I see it getting to a six per cent to nine per cent ROE.”
In 2023 the bank entered the mortgage broker market, which should give a fillip to growth next year.