Broker channel contributes to its robust performance
Customer-owned People First Bank has posted solid financial results for the year ending June 30, 2024 – its first full financial year after the merger of Heritage Bank and People’s Choice.
People First reported a net profit after tax of $41.4 million, a 29% increase from $32.1 million the previous year. The bank’s total loans and advances grew by 6.2%, rising from $19.1 billion to $20.3 billion.
Its residential lending portfolio increased by 6.8%, from $18.3 billion to $19.6 billion. Retail deposits climbed 6.9% to $19 billion, up from $17.8 billion.
People First Bank’s 2024 financial report also revealed a 5% growth in total assets, which reached $24.5 billion. The bank’s total capital ratio increased to 15.5%, with Tier 1 Capital rising by 1% over the 12-month period.
In addition, People First Bank completed the largest senior unsecured debt issue by a customer-owned bank in Australia, which opened new channels with wholesale investors.
The bank welcomed 47,000 new customers during the year and maintained a strong net promoter score (NPS) of +32, significantly higher than the market average of +13.
The bank’s expanding focus on the broker channel also contributed to its strong performance. Third-party loans reached $3.1 billion, a 15.8% increase from $2.7 billion the previous year. The number of third-party loans also rose by 9.2%, totalling 6,787 loans for the year.
The bank said digital enablement remains central to its strategy, with significant investments in technology aimed at creating a more streamlined and secure banking experience. The bank is working with leading technology providers, including Backbase, Salesforce, Simpology, and Fiserv, to build a suite of cloud-based platforms.
The bank also reported $9.3 million in community support through initiatives such as the People First Community Lottery and the People First Bank Foundation. It also achieved carbon neutrality by purchasing Australian carbon credits and continued its efforts to reduce its carbon footprint. In addition, the bank advanced its reconciliation initiatives with First Nations people through its Reconciliation Action Plan.
“Our results this year highlight the strength of our merger and the strategy guiding us forward,” said Steve Laidlaw (pictured), chief executive of People First Bank. “By combining a strong cultural foundation with technology investment, we are creating a customer-focused, sustainable, and technologically advanced bank positioned for long-term success.”
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