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Police & Nurses Limited (PNL) through its two customer-owned banking brands, P&N Bank (Western Australia) and bcu (New South Wales and Queensland), ended the year with Group profit after tax of $16.6m, similar to the prior year.

Announcing PNL’s annual results, CEO Andrew Hadley said the Group’s prudent approach over the past couple of years during the economic uncertainty had positioned P&N Group well, finishing FY22 with total assets of $7.35 billion.

“We have continued to position our lending and deposit products competitively, with an ongoing focus on delivering value to our customers,” Mr Hadley said.

“After allowing for the sale of P&N Financial Planning (PNFP), our Group delivered a strong underlying performance with profit from continuing operations up 15.2%.

“In a challenging landscape wrought with significant economic uncertainty, extreme unprecedented weather events, and the continued impacts of COVID-19, particularly on staffing levels, we have recorded another solid financial performance and delivered a range of exciting innovations and milestones.”

P&N Group became the first customer-owned bank in the country to issue a Tier 1 Capital Note of $75m in May. Not only did this herald a milestone for the customer-owned banking sector, but the issue was 1.4x oversubscribed demonstrating investor confidence in the Group’s strategy and direction. The capital raised is being used to accelerate our digital transformation, position the Group to capitalise on further industry consolidation and enable above system organic growth.

In June, the Pindan Capital Two Rocks Pty Ltd entity under receivership sold the undeveloped property lot for $15.8m and the net proceeds were paid to the Group. On finalisation of settlement and following a full reconciliation, a final $1.5m impairment was raised to cover various ancillary costs including the priority to another lender, holding costs, sales commission, legal and administrator fees.

P&N Group’s transformation momentum remains strong, with accelerated benefit realisation being seen from the delivery of a more contemporary banking experience for our retail and business banking customers and our broker partners.

“Early benefits from our transformation program have supported broker lending growth of 17% and overall lending portfolio growth of 9%. Most importantly, this means that we have helped more Australians realise their dream of home ownership for the first time or achieve the next step on the property ownership ladder.

“It’s vital that we continue to anticipate and adapt to the changing needs and expectations of our customers and evolving consumer behaviours. This includes the products and services we offer, the persistent shift towards digital and online banking and the role our organisation plays as a socially responsible corporate citizen.”

Summary of FY 21/22 results

  • Net profit after tax of $16.6 million
  • Net interest income increased to $136 million
  • Total loans under management increased 9% to $5.84 billion
  • Total deposit balances increased 5% to $5.75 billion
  • Total assets increased 6% to $7.35 billion
  • Total members’ funds increased to $560.3 million
  • Capital Adequacy position remains healthy ending the year at 15.98%
  • Total membership stands at 167,348