ME Bank records $29m net profit
Industry funds-owned ME Bank has recorded an after-tax underlying net profit of $29.1 million for the six months ended 31 December, driven by a record number of home loan settlements.
This is a 14 per cent rise from the previous corresponding period ($25.5 million).
ME Bank chief executive, Jamie McPhee, said home loan settlements were up 41 per cent to $2.4 billion in the middle of the financial year compared to the previous year.
"We settled the highest amount of home loans in ME Bank's history - $432 million — in December 2014," he said.
Brokers also contributed to this area, generating $1.1 billion in home loan settlements for the half-year, up from $0.4 billion from the previous year.
Total on and off balance sheet assets went up to $22.5 billion at 31 December compared to $21.7 billion at 30 June, mainly due to growth in housing loans.
McPhee also took the opportunity to welcome recommendations of the Financial System Inquiry, which he said will address the regulatory, capital and funding irregularities that "unfairly advantage Australia's major banks".
He pointed to comprehensive credit reporting, calling it one of the most exciting changes, and said it has wider economic benefits.
AUTHOR
Malavika Santhebennur
Recommended for you
The struggle to recruit specialist expertise in alternative asset classes means senior analyst salaries are surpassing $200,000 as fund managers compete for talent, observes Kaizen Recruitment.
TWC Investment Management, which launched in September, has unveiled a long-only equity fund targeting global wealth creator stocks.
As thematic ETFs gain popularity among advisers, research houses have told Money Management of their unique challenge to rate these niche products and assess their long-term viability.
Magellan Financial Group’s chief financial officer and chief operating officer Kirsten Morton is set to depart from the asset manager after more than a decade.
