Teachers Mutual Bank Limited FY20-21 Annual Results

Annual Results 2020-2021

Teachers Mutual Bank Limited FY20-21 Annual Results

  • 20.1% growth in home loan assets, which is 15% above system housing loan growth
  • Net profit $28.1 million
  • Membership grew by 10,000 to 221,000 across Australia
  • Deposits up $1.2 billion to $7.9 billion
  • Total assets grew $1.61 billion to $9.75 billion
  • Certified Responsible Investment products grew 84% to $8.3 billion
  • 55 NPS score for Teachers Mutual Bank and Firefighters Mutual Bank

14 October 2021: Teachers Mutual Bank Limited continues to build on its strong foundation as a community focused bank, posting solid results in FY20-21 that position the Bank well to support a growing national and digital reach.

CEO Steve James said Teachers Mutual Bank Limited’s performance has been driven by an unrelenting focus on providing highly personalised services and enabling sustainable growth.

Home Loan balances were a notable increase for the year, growing by 20.1% to $7.7 billion, well above system loan growth of 5.3%, which means Teachers Mutual Bank Limited maintains a 21-year record of above-system growth. Deposits also grew by $1.2 billion to $7.9 billion.

“When COVID-19 reached Australia, it brought a great deal of economic uncertainty. Now, more than 18 months later, we can see that our Members have responded by moving their money into savings or taking advantage of historically low interest rates to buy their home, creating a buoyant housing market which was an unexpected side-effect of the pandemic,” said Steve James.

During FY2020-21, Teachers Mutual Bank Limited attracted 10,000 new members from across Australia. Close to a third of these new members came from Victoria, following the merger with Firefighters Credit Co-operative Limited. This number is set to increase further later this year when Pulse Credit Union Limited Members, also based in Victoria are welcomed into the Health Professionals Bank and UniBank brands.

“In the past 12 months we have continued to provide our Members – many who have been at the frontline of the COVID-19 pandemic – financial services and products that truly meet their needs.

“We have significantly bolstered our digital capabilities, overhauled our home loan portfolio and continued to lead as one of Australia’s most socially responsible banks,” Steve James said.

Member satisfaction remains high at 88% and was measured through an external survey house. Teachers Mutual Bank and UniBank returned NPS scores of 55 demonstrating Teachers Mutual’s unwavering commitment to its Members.

A key focus for Teachers Mutual Bank Limited during FY2020-21 was the work undertaken to launch Australia’s first digital-only mutual bank for employees and their families from the education, emergency services and healthcare sectors, as well as university graduates.

“While there are many things from the past 12 months that we as an organisation can feel proud about, Hiver was a significant development for both our Bank and the Australian market.

“Research shows that 90% of Australians expect the money in their bank accounts to be managed in a socially responsible way1, and Hiver is the first digital-only, mutual bank in Australia to meet global benchmarks for responsible investment,” said Steve James.

“This is in line with our purpose: ‘banking for good, for those who do good’, and while Hiver is currently in its early stages, we are seeing strong interest from people looking for digital services backed by a sustainable approach to banking.”

During FY2020-21 Responsible Investment Association Australasia (RIAA) Certified Responsible Investment products, grew from $4.5 to $8.3 billion. In the same year, Teachers Mutual Bank Limited was the only bank to be named as a Responsible Investment Leader by the RIAA.2 Third-party verification by the RIAA is one example of how Teachers Mutual is meeting its Members’ expectations for socially responsible banking.

Teachers Mutual was also the first bank to sign the Climate League 2030 initiative led by the Investor Group on Climate Change and commit $20 billion of Certified Responsible Investment products with zero investment in the fossil fuel industry by 2030. The aim of this initiative is to reduce Australia’s emissions in line with the Paris Agreement, a cut of 45%.

“FY2020-21 has been a remarkable year for many reasons. As we entered the first full year of the COVID-19 pandemic, our people have proven they are resilient and agile, and have continued to operate to our high standards.

“Being a mutual means our success is our Members’ success; our profits will always go towards meeting our Members’ evolving needs. This past financial year we have again shown that Teachers Mutual Bank Limited has the motivation, agility and focus to best support our growing national membership,” said Steve James.

Read the 2020-2021 Annual Report and Sustainability Update

[1] According to the Responsible Investment Association of Australasia 2020 From Values to Riches consumer report.

[2] Responsible Investment Association of Australasia 2021 Responsible Investment Benchmark Report