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Teachers Mutual Bank Limited delivers strong financial performance

Teachers Mutual Bank Limited has today released its Financial Year 2025 results, reporting 50% increase in net profit after tax.

Key highlights

  • Net profit after tax up 49.8% to $36.7 million 
  • Capital adequacy ratio strengthened to 17.01% (+1.42%)
  • Retail deposit balances increased to $9.2 billion (+$32 million)
  • $1.5 billion in home loan approvals supporting our members and first home buyers
  • Net interest margin increased to 1.86% (+0.21%) 
  • Announced proposed merger with Australian Mutual Bank Ltd 
  • Named Customer-Owned Financial Institution of the Year in Money Magazine Consumer Finance Awards 2025
  • New security feature prevented more than $4 million in mistaken payments and possible scams
  • B Corp re-certification achieving the second highest B Impact score of all certified mutual banks in Australia*

Teachers Mutual Bank Limited has reported a year of strong performance, with net profit after tax up 49.8% to $36.7 million.

CEO at Teachers Mutual Bank Limited, Anthony Hughes, said that the strong results are underpinned by the bank’s new strategy to drive simplification and modernise services, enhancing member outcomes and overall experience.

“Being member-owned, our profits are reinvested back into the bank for the benefit of our members and the communities they support. In a high cost of living environment, this year we have offered competitive products and rates, while remaining focused on making our banking experience simpler and safer and ensuring the long-term sustainability of our bank.”

Retail deposit balances increased to $9.2 billion over the year and the net interest margin increased by 0.21% to 1.86%.

“Our strong results and capital position support our continued investment into important transformation programs, and our proposed merger with Australian Mutual Bank,” said Mr Hughes.

Announced in December last year, the proposed merger with Australian Mutual Bank will bring the two banks together to create an organisation with a combined $13.4 billion in total assets. 

“Australian Mutual Bank, another member-owned bank, is a great partner for us,” added Mr Hughes. 

“Merging our two trusted and financially sound banks will create a stronger, future-ready bank that can deliver greater benefits to members while helping ensure our bank’s sustainability well into the future. 

“We’re well progressed in the application process and are expecting to bring the merger proposal to a member vote in 2026.”

In the year to June 2025, Teachers Mutual Bank Limited had helped more than 3,700 members buy a new home or refinance an existing property, and 960 of these were first home buyers. Across the home loan portfolio, more than a quarter of members were more than a year ahead on their home loan repayments as of June 30.

Mr Hughes said, “This year, we focused on delivering visible and meaningful enhancements for our members. We upgraded our technology and grew our Member Contact Centre team, alongside the delivery of digital banking updates and new features enabling simpler and safer banking services.”

In a first for the customer-owned banking sector, in September 2024, Teachers Mutual Bank Limited implemented a new security feature to check if account details look right when making a first-time payment. Embedded in the bank’s internet banking and mobile apps, this additional security feature helped prevent more than $4 million in mistaken payments and possible scams between September 2024 and 30 June 2025.

During the year, Teachers Mutual Bank Limited re-certified as a B Corp, achieving the second highest B Impact score of all certified mutual banks in Australia* and for the fourth year in a row, was the only bank recognised as a Responsible Investment Leader by Responsible Investment Association Australasia. In June 2025, Teachers Mutual Bank was named Customer-Owned Financial Institution of the Year in Money Magazine Consumer Finance Awards 2025.

Teachers Mutual Bank Limited Annual Report 2024/2025 will be available on our website from 13 October 2025.

 

*At time of certification