The Greater Building Society continues to be in great financial shape to take on the major banks for the benefit of people in regional NSW, South East Queensland and Townsville according to CEO Don Magin.

 

At its AGM in Newcastle today, Mr Magin announced an after tax profit of $30.55 million. He said strong lending and deposit growth of 9.7% and 13.6% growth respectively, shows that people are realising that there are viable alternatives to the major banks to meet their financial needs.  

 

At the end of 2010/11, total member funds had increased by $28 million to $305 million. Total assets stood at $4.61 billion, up $366 million. The Greater’s capital adequacy is well above APRA requirements and its ratio of impaired loans to total loans was just 0.04%, which Mr Magin said reflected the Greater’s  responsible lending policies and financial strength.

 

“As the Greater is owned by its members, rather than shareholders, our focus is on being financially secure but also putting members before profits,” Mr Magin said.

 

“The Greater’s standard variable home loan rate is around half of one percent lower than the standard variable rates of the Big Four banks and the gap widens when comparison rates are used,” he said.      

 

“With a strong financial position, highly competitive rates, low fees, and superior service, the Greater is providing much needed competition in the financial services market-place.”

 

Chairman John Kilpatrick praised Greater staff for again achieving a 95% customer satisfaction rating.

 

“Our efforts have been recognised with the Greater named Australia’s Best Home Lender, Best Savings Account Provider and Building Society of the Year in the 2011 Mozo People’s Choice Awards as well as Building Society of the Year in the 2011 Australian Banking and Finance Awards,” Mr Kilpatrick said.   

 

He said another highlight was work to establish the Greater Charitable Foundation which was launched in July 2011. The Greater made $1 million available for distribution by the Foundation in its first year and will continue to fund the Foundation annually out of profits. 

 

The Greater expanded in the previous financial year by acquiring the Armidale based ABS Building Society in May. It increased its own ATM network by 13, taking the total number to 98 (it now has 101). It also offers members direct fee free access to almost 4,000 ATMs Australia wide through the rediATM network. Mobile (smartphone) banking has been introduced to ensure the Greater offers customers a full range of service options.

 

Looking ahead, Mr Magin, who has just been appointed chairman of the mutual financial sector industry body, Abacus, urged the Federal Government to continue meaningful reforms to ensure building societies such as the Greater have a level playing in order to be the fifth pillar of the Australian banking system.

 

Established in 1945 the Greater serves almost 250,000 customers through 67 branches, the largest branch network of any Australian building society.

 

After tax profit	$30.55 million
Total member funds	$305 million
Total assests	$4.61 billion
Retail deposit growth 2010/11	$412 million (13.60%)
Loan portfolio growth 2010/11	$338 million (9.70%)

 

Media information: Craig Eardley on 0437 477 493.