- Moody’s gives Defence Bank a stable ratings outlook.
- Rating of Baa1 | Stable | P-2 due to strong asset quality, good capitalisation and profitability.
- Moody’s notes Defence Bank's focus on conservatively underwritten residential mortgages, geographic diversification across Australia, and lending to current and previous Australian Defence Force personnel, who have strong job and income stability.
- Moody’s rating secures a “ratings double”, with Standard and Poor’s (S&P) previously awarding Defence Bank a credit rating as BBB |Stable| A2.
On Wednesday 4th November 2020, Defence Bank welcomed credit rating agency Moody’s positive outlook for underpinned by strong asset quality, low arrears and geographic diversification of its members across Australia.
Moody’s has delivered a long term credit rating of Baa1 for Defence Bank.
It forecasts strong future performance through a low risk business model backed by profitability, substantial liquidity and the strong employment stability of its members all providing a buffer during the coronavirus driven economic downturn.
Defence Bank CEO David Marshall said:
“Today’s announcement from Moody’s is a powerful endorsement of Defence Bank in the COVID-19 environment and underlines its strength, safety and security for members across Australia.
“We’ve worked really hard with our members in these difficult times.
“it’s particularly pleasing that Moody’s points out our problem loans compares favourably with that of the Australian banking system and that Defence Bank has outperformed other domestic mortgage-lending-focused small banks rated by Moody’s.
“Moody’s rating today is recognition of our strong performance and prospects. In the last 12 months Defence Bank recorded a $10.06 million profit which was up on the previous year and reflected record loan funding, with home loan growth three times above system.
“We share and welcome Moody’s optimism for future growth. These ratings announcements don’t happen without outstanding customer care. Our team has really gone the extra mile during the pandemic, which is reflected in our Net Promoter Score (52+) that outflanks the major banks and from our staff and customer feedback. We look forward to continuing to deliver for members and supporting them and their communities.”
“Defence Bank has secured the rare double of today’s Moody’s rating on the back of S&P previously rating the bank as BBB |Stable| A2.”