The industry super fund-owned bank says statutory profit after tax — which includes a realised gain on hedging instruments ($3.6 million), and spending on IT projects ($10.9 million) — was $89.1 million, up from $61.9 million in 2017.
ME chief executive Jamie McPhee said: “It is vitally important to have a bank directly aligned with the interests of customers performing strongly, particularly in the current environment.
“ME is owned by industry super funds and is charged with helping all Australians get ahead. Realising that mission is about growing our business and reaching more customers.”
“Underlying earnings have grown at an annual compound rate of 19% since June 2014,” he said.
“Our home loan portfolio grew 1.3 times the industry average due to $6.2 billion in new home loan settlements.
“Customer deposits grew 17% to $14.8 billion while household deposit growth topped the industry, up 27% or nearly five times the industry average, and provided improvements to the quality of ME’s funding profile while ensuring consistently high rates of return for customers.”
“Customer numbers grew 13% to 474,000 and have increased at an annual compound growth rate of 11% since June 2014.
“Underlying return on equity of 8.1% was in line with target. The cost-to-income ratio was 64.5%, a slight increase due to accelerated amortisation of legacy software systems.”