Residential loans portfolio increases by $550 million
People First Bank has announced strong growth in home loans and a strong profit in the first half of the 2024 financial year.
In the six months leading up to Dec. 31, People First Bank’s residential loans portfolio expanded by $550 million, which translates to an annualised growth rate of 6%, surpassing the system growth rate of 4.2%.
The bank also saw increases in total loans and advances to $19.64 billion, retail deposits to $18.29 billion, and total assets to $24.59 billion. It recorded a net profit after tax of $31 million for the half-year and finished the period with a liquidity ratio of 18.15%.
People First Bank, previously known as Heritage and People’s Choice, delivered its first financial report as an independent entity following its merger under the new brand name.
The bank is rolling out its rebranding nationally, including the renaming of Heritage Bank Stadium on the Gold Coast to People First Bank Stadium for the upcoming 2024 AFL season.
Peter Lock (pictured), chief executive of People First Bank, attributed the bank’s growth to its focus on its members, achieving a net increase in membership by 13,586 during a competitive period.
“We know we have the products and service that people want,” Lock said. “Now, as we introduce our new brand, we have the opportunity to tell our story to a broader, national audience and attract even more people who want a bank that’s focused on them and not billion-dollar profits. There’s no reason we can’t be Australia’s first member-owned bank to have a million members.”
Following the reporting period, the bank successfully raised $400 million through its inaugural senior debt transaction, indicating strong market confidence in its future.
Meanwhile, People First Bank has announced it is introducing its new logo through various community initiatives, including its partnership with the Western Bulldogs AFL team and its national charitable Foundation and Community Lottery. While the bank has adopted the new name, its retail brands, Heritage Bank and People’s Choice, will continue in the market until the rebranding process is complete.
“We anticipate the rebranding of People’s Choice will be largely completed by the end of this year, with Heritage Bank to follow, consistent with the integration of our products and technology,” Lock said.
“This is not just a new name on an old organisation. We’ve taken the opportunity provided by the merger to build an all-new bank – a truly purpose-driven, customer-focused financial institution that will deliver positive change to our members and our communities.”
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