Robust performance driven by strong loan and deposit growth
Police & Nurses Group has reported a net profit after tax of $24.2 million for financial year 2024 (FY24), representing a 24% increase over the previous year.
Key figures from the financial year include a net interest income rise of 8.4% to $172 million, with total loans under management growing 10% to $7.3 billion. Total deposit balances also increased by 10%, reaching $7 billion, while total assets rose by 8% to $8.9 billion.
Members’ funds grew by 2%, ending the year at $589 million. P&N’s capital adequacy ratio also remained stable at 14.82%.
Customer-owned P&N Group operates two retail banking brands: P&N Bank in Western Australia and BCU in New South Wales and South East Queensland.
Andrew Hadley (pictured above), chief executive of P&N Group, said the company achieved strong financial results while laying the groundwork to improve customer experience and sustainability.
“Navigating the challenging economic environment, the group balanced competitive interest rates with sustainable financial performance to protect long-term customer value,” Hadley said.
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Hadley attributed the profit increase to balance sheet growth, prudent margin management, and cost discipline. He also noted the company’s 10% growth in both lending and deposits, driven by the appeal of its customer-owned banking model, which brought in 16,300 new customers over the year.
Loan impairment provisions remained steady at 0.08% of gross loans and advances, reflecting P&N’s robust credit practices. Hadley added that home loan customers whose fixed rate terms were expiring were offered competitive variable rates to mitigate repayment shock.
P&N continued to focus on digital banking, with a 12% year-on-year increase in online transactions. The company invested in technology and platforms to improve personalised customer experiences, streamline processes, and speed up home loan approvals.
Hadley reported that 60% of simple home loan applications were approved within 24 hours, and broker satisfaction had significantly improved over the past 12 months.
P&N also invested in strengthening its cyber resilience, implementing new technology, data, and artificial intelligence tools, as well as fraud and scam awareness programs.
Although P&N recently decided not to proceed with a proposed merger with Beyond Bank, Hadley said the board remains open to exploring future merger opportunities alongside organic growth.
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