Chair celebrates the group’s achievements despite challenging times
Newcastle Greater Mutual Group (NGM Group) has released its inaugural annual financial results for financial year 2023, revealing a net profit after tax of $72.9 million.
Total assets of the group are now $20.1 billion, with net assets of $1.7 billion and regulatory capital of $1.6 billion. The group has a $15.3 billion home-loan portfolio, with 90% of its customers ahead on their home loans and a current 90-day delinquency rate at 0.09%. It also has customer deposits of $16.5 billion and a regulatory liquidity ratio of 19.7%, which is well above the minimum prudential requirement. The group’s net interest margin is at 2.35%.
“NGM Group’s net profit after tax was $72.9 million, which is an illustration of our strength and sound underlying profitability, a strong result considering total assets in excess of $20 billion,
net assets of $1.7 billion, and the challenging operating environment,” said Wayne Russell (pictured above right), chair at NGM Group. “This total net profit is all the more outstanding given Greater Bank and Newcastle Permanent reported a collective profit of $38.1 million last year.”
Helping customers and growing the business
Newcastle Permanent was named Australia’s best bank in the 2023 Forbes’ World’s Best Banks rankings, with Greater Bank ranked sixth. With these recognitions, NGM Group is the only Australian bank with two brands that made it to the top 10 of the list. Newcastle Permanent ended the year with a customer satisfaction rate of 92% and a net promoter score (NPS) of 47. Greater Bank ended the year with a customer satisfaction of 83% and an NPS of 30.
“Both our brands have continued to support customers in increasing volume since our historic merger in March, with Greater Bank and Newcastle Permanent growing deposits, lending and customers,” said Russell.
“Further evidence of the strength of our position is our capital adequacy ratio of 21.9%, which is not only market-leading amongst our peers, it’s actually stronger than we anticipated premerger and makes the group one of the best-capitalised ADIs in Australia.”
Bernadette Inglis (pictured above left), group CEO, highlighted the key investments and innovations integrated to Newcastle Permanent and Greater Bank, including the enablement of digital banking, digital home loan, and systems enhancements for fraud and scam detection.
“In merging two Hunter-based companies with a similar geographic footprint, a commitment to mutuality, and closely held values established over decades, continuing to grow our customer base was recognised as being a key challenge – and one our people have taken on with great enthusiasm,” said Inglis.
“We’re excited to share our plans to expand our base in the coming year, with a strong agenda to grow our deposits and lending customers. Having identified opportunities to deepen our market share within our footprint, we’re also planning to expand our offerings into new regions,” she said.
Have thoughts on this story? Leave your comments below.
