Don Magin today announced that the Greater Building Society has achieved an after tax profit of $20.3 million, maintaining profits at last year’s levels. Total member funds increased by $18 million to $253 million. The Greater’s total assets now stand at $4.11 billion, up $78.9 million.
Mr Magin says that maintaining profit levels was an outstanding result that compares favourably with regional banks and other Australian mutual financial organisations. Figures published by Australian Prudential Regulatory Authority (APRA) in September show those institutions experienced an average 43% and 24% reduction in net profit respectively. Unlike most other Australian and global financial institutions, the Greater’s already low level of bad debts went down further this year.
Mr Magin says that consumers will be the ultimate winners from the Greater’s results.
“Competition in retail banking is declining as the major banks acquire competitors,” Mr Magin says.
“Now, more than ever, financially strong and stable mutual institutions are critical to maintaining competition and choice in the market place for those looking for an alternative to the major banks,” he says.
He says there were several reasons for the Greater’s continued strong performance. The Greater has never had direct exposure to the US sub prime crisis and it has maintained its prudent and conservative lending policies. He also points to the institution’s mutual structure as another key reason for success.
“As the Greater is owned by its members, rather than shareholders, our focus is on providing competitive rates, low fees, member rewards and outstanding service rather than just profit.”
“The Greater maintained its 96% customer satisfaction rating this year, one of the highest customer satisfaction ratings in the world.”
Mr Magin said the other major highlight for the year was the development of a new marketing campaign starring Jerry Seinfeld to support its plan to become a viable alternative to the major banks. He said the campaign, which started in July, was already paying dividends in its existing area of operations. Independent research commissioned by the Greater shows the campaign achieved unaided recall of almost 50% and raised its brand profile by 13%.
Chairman, John Kilpatrick, praised the Greater’s management and staff on achieving such a strong result in the face of very difficult economic conditions.
“This is an outstanding result, and is a testament to the Greater’s conservative approach to risk and sound management practices” Mr Kilpatrick says.
The Greater continued its expansion into South East Queensland opening a new branch in the Gold Coast suburb of Elanora in December 2008. This took the Greater’s total number of branches to 66, the largest branch network of any Australian building society. The Greater Building Society is a Top 500 private company (BRW) with more than 250,000 members and 700 staff. It has been operating since 1945.
Media information: Craig Eardley on 0437 477 493. View the full annual report at www.greater.com.au
