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Member focus underpins Teachers Mutual Bank Limited FY23 performance

Financial Results FY23

Teachers Mutual Bank Limited continues to build on its proven foundation as a Member owned bank, announcing their FY23 financial results that were underpinned by organic Membership growth, competitive term deposit product performance and positive lending growth. 

The Bank reported the following FY23 financial results: 

  • Net profit after tax of $27.9 million 
  • Membership growth to 234,068 nationally
  • Growth in total assets to $10.7 billion  
  • Increase in consumer lending by $15 million  
  • Capital adequacy ratio of 15.6% 
  • Net interest margin improved to 1.69%

Teachers Mutual Bank Limited CEO Steve James said the Bank had achieved another solid year of Member centric performance in a challenging year with high inflation and a rising interest rate environment.   

“Managing the balance to provide value for all Members and to operate sustainably was our key focus in FY23, a year that presented tighter and rapidly changing financial conditions,” Mr James outlined. 

“As our operations normalised in FY23, our focus on our Members continued to be unwavering. We invested in increasing front line staff in the Bank’s Contact Centre and in our technology to enhance and uplift our Members’ service functionality. This investment, coupled with increased costs due to competition and inflation, resulted in a 14% increase in our operating costs. 

“During FY23, Teachers Mutual Bank Limited attracted around 3,700 new Members from across Australia with our organic growth demonstrating demand from essential workers for our member owned bank.”

Home loan balances continued their upward trend, increasing for the year by 2.11% to $8.6 billion. This growth was driven through first party loan origination and strong growth through the broker or third-party channel. 

This loan balance growth was supported by a strong 35% increase in term deposit balances driven by competitive product offers. Capital adequacy was recorded at 15.6% as at 30 June 2023. 

Mr. James added, “FY23 has been a noteworthy year for many reasons as we have remained committed to strong, prudential standards of operation during the reporting period.” 

“Following our Certification as a B Corporation in January 2022, we joined a global community of 44 banks worldwide committed to using business as a force for good. This was supported by our Members at our 2022 AGM, with a 91.4% vote in favour of updating our constitution to include B Corp rules,” he shared. 

“In 2023 the Bank was named as one of the World’s Most Ethical Companies for ten years in a row, and we announced that by 2027 the Bank’s car fleet will be 100% electric.”

Mr James reflected, “As I prepare to transition to retirement after 18 years as CEO of Teachers Mutual Bank Limited, I am optimistic about the future of the Bank which is well provisioned and is leading the way in using the Bank as a force for good.”

“Being a mutual means our success is our Members’ success, our profits will always go towards meeting our Members’ evolving needs. We will continue to invest in our Bank for our Members to deliver on our purpose of being a bank for good for those who do good.”