BankSA delivers strong half year result on back of growth strategy
Monday 2 May, 2016
BankSA has announced an 8% increase in net profit after tax for the six months to
31 March 2016, compared to the same period last year.
A strong performance in home and small-to-medium enterprise (SME) lending, an increase in deposits and stronger customer growth, has delivered another solid result for South Australia’s local bank.
BankSA Chief Executive, Nick Reade, said the results reflect a strategy and determination to be the bank that helps more South Australians to own their own homes, and start and grow their own businesses.
“Despite the subdued economy, we’ve grown our total lending by 4%, with home lending being particularly robust.
“This is a good result for BankSA but an even better result for the thousands of people that we’ve been able to help to achieve their goal of home ownership,” said Mr Reade.
Key results compared to the same period last year include:
· Total lending increased 4% to $21 billion;
· Total lending to SME segment increased 9% to $2 billion;
· Home loans increased by 5% to $15 billion; and
· Deposits grew by 3% to $12 billion.
“South Australia is a small business economy so it is encouraging to have seen SME lending growth of 9%,” said Mr Reade.
BankSA continued to optimise its physical footprint through a program of investment across both metropolitan and regional branches, in addition to providing alternate service models in areas of low usage.
Since late 2013, 45 branches have been refurbished with six completed this half, and another 27 regional branches also receiving refurbishments.
“We are investing another $12 million this year on refurbishing and upgrading our branches and technology, with the majority of these being in regional parts of the state,” said Mr Reade.
“This will bring BankSA’s investment in its network over the previous two years and coming two years to around $50 million.”
In-branch video conferencing technology has been installed in another 13 branches this half, with 58 branches – 26 metro and 32 rural branches – now offering customers the ability to connect live with subject matter experts, regardless of their location. This technology now covers 67% of BankSA’s branch network.
“We have also established an option where regional councils can deliver local banking services in their communities, in addition to offering banking services via Australia Post outlets at more than 300 locations,” said Mr Reade.
“By transforming our service offering we have been able to help more customers to achieve their goals,” said Mr Reade.
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