CEO, Andrew Hadley, said the result is attributable to strong growth in both loans and deposits as well as operational efficiencies and a reduction in overall costs.
“As a customer-owned bank, profit is important because it supports further growth and improves our ability to provide greater value to our members through innovative and competitive products and services,” he said.
Mr Hadley said the strong strategic focus on improving P&N's value proposition has ensured member advocacy remains very high, with the Bank's Net Promoter Score (NPS), consistently performing above the levels recorded by larger competitors.
“Our focus over the past year has included enhancements to our digital platforms, while maintaining our strong commitment to face-to-face service through our network of branches.
“Enhancing value for our members through our product suite, pricing and community platforms, and providing members a wide range of channels through which they can transact with us will remain a core focus over the next 12 months."
P&N Bank’s Net Profit After Tax (NPAT) for the 16/17 financial year was $11.1 million, up from $10.6 million in the previous financial year with capital and liquidity maintained at appropriate levels.
Mr Hadley said growth in Loans Under Management of 6.7 per cent had been intentionally constrained compared to FY15/16 (21.0 per cent) largely reflective of tighter regulatory controls on lending across the entire banking sector.
“In a subdued WA housing market, P&N's solid growth demonstrates that our lending products are resonating with West Australians,” he said.
“We believe that the uptake of our new lending, payments and savings products places us in a strong position to continue to grow our membership over 17/18.”
In relation to the P&N Bank Group results, Mr Hadley noted the positive impact of a one off tax treatment associated with the proposed sale of a non-core investment, alongside write-downs associated with the constrained nature of the commercial property sector.
P&N's financial accounts for 16/17 can be found here. The full 2017 Annual Report will be available early November in advance of the AGM on 13 November.
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