- Defence Bank delivered Net Profit after Tax (NPAT) of $10.04m - a profit improvement of 2.5%.
- Assets increased $222 million, up 9.8% to $2.504 billion (approx. 2.5 times greater than system growth).
- Member deposits increased by 7.1% or $139 million to $2.09 billion.
- Net interest income increased by $1.59 million up 3.59% to $45.86 million.
- New members to the Bank grew by 4,500.
Defence Bank taking a different path to its rivals.
In a year where many financial institutions saw marked reductions in profit, Defence Bank is pleased to announce a strong financial result for the year with Net Profit after Tax (NPAT) of $10.04m – an increase of 2.5%.
The result was underpinned by strong growth in lending of 2.5 times greater than system growth and an increase in Member deposits of 7.1%.
“The result is pleasing as it demonstrates our ability to deliver sound financial results, no matter what the operating environment, allowing us to keep investing in better products and services for our Members benefit. It also validates our people led, technology enabled strategy,” says David Marshall CEO of Defence Bank.
“History shows that large multi-year technology transformation programs seldom deliver the promised benefits to members or employees, nor do they deliver the financial gains. As such we have a people led, technology enabled business.”
“Defence Bank is really beginning to see the benefits of this strategy and is positioned well for the future low-interest rate environment. We’re relentlessly focused on reducing the effort our members make in doing their day-to-day banking. It’s about doing the basics better than anyone else and remaining relevant to our unique Member base. Members don’t want fancy marketing campaigns, buzzwords and reams of fine print. They just want things to be straight-forward and down to earth.”
“We measure Member effort each month and actively work on correcting issues identified by Members. This allows us to invest efficiently at record levels for our members. Our smaller size is an advantage as we can be more nimble in making changes.”
A direct example of Defence Bank’s ability to incorporate Member feedback led to the launch of Salute - a deposit account for Members deployed or achieving service milestones which has contributed to our growth in deposits.
Their Member experience is ably supported by technology with a mobile banking app winning “Excellent Banking App” Mozo Experts Choice Award 2019.
These strong financial results also come with strong Member advocacy, as measured by the Net Promoter Score (NPS). NPS continues to be strong with an average annual result of +31. Throughout the year Defence Bank saw scores as high as +49.
“We continue to remain humble and feel deeply privileged to serve those who protect us."