Home loan portfolio also grows 9% year-on-year
Newcastle Greater Mutual Group (NGM Group) has reported strong financial results for the 2024 fiscal year, reinforcing its position as one of Australia’s largest customer-owned banks.
The group posted a net profit after tax of $131.1 million and an underlying net profit of $104.6 million. The group’s total assets reached $21.2 billion, with net assets of $1.9 billion. Its capital adequacy ratio stood at 22.8%, and liquidity ratio at 18.4%, both well above regulatory requirements.
NGM Group’s home loan portfolio also grew by 9% year-on-year to $16.8 billion, outperforming sector growth. Over 80% of customers are ahead on loan repayments, with arrears over 90 days at a low 0.08%. Customer deposits grew by 6.4% to $17.6 billion, further supporting the group’s liquidity.
“We set ambitious benchmarks in our first year and we’ve stayed true to the legacy of our brands by demonstrating our service to both our customers and the community,” said NGM Group chair Wayne Russell (pictured), commenting on the annual results.
The group, formed by the merger of Newcastle Permanent and Greater Bank in March 2023, attributes its performance to high customer satisfaction, digital innovation, and a focus on community investment.
Throughout the year, NGM Group supported more than 11,000 customers with new home loans, including over 1,300 first home buyers, while more than 27,000 new savings or transaction accounts were opened.
A key highlight for NGM Group was the launch of Newcastle Permanent’s digital-first home loan, allowing customers to complete applications in 15 minutes and receive approvals within hours. It also invested heavily in cybersecurity, sending four million scam awareness messages and continuing to enhance security measures. Digital banking has been embraced by its customers, with 97% of transactions completed through digital channels.
NGM increased its community investment to over $6 million, up from its annual commitment of $4.5 million. This funding supported charitable initiatives, sponsorships, and regional programs.
Looking ahead, NGM Group plans further investments in digital products and regional initiatives.
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