BankSA delivers solid end of year result
BankSA delivers solid end of year result
6 November 2017
BankSA today announced a solid result with a net profit after tax of $200 million for the year ended 30 September 2017.
The result was underpinned by strong growth in small business lending, solid home lending and reduced impairments.
Key highlights include:
- Home lending up 3%
- Total business lending up 3%
- Small business lending up 11%
- Deposits increased 2%
- Impairments decreased by 6%
BankSA Chief Executive, Nick Reade, said the result was a tribute to the hard work of the bank’s dedicated staff.
"This result would not be possible without the dedication and hard work of thousands of our employees across the state. I would like to thank them for their commitment to our business and to South Australia," Mr Reade said.
"The result also reflects the bank’s focus and determination to support more South Australians and encourage investment.
"Despite difficult economic conditions in South Australia, we’re resolute in our commitment to support growth and development in the state.
"The South Australian economy needs investment in jobs and growth, and we’re pleased to have continued to support business to grow and invest here."
Mr Reade said the small to medium business sector was particularly strong for BankSA, with an 11% increase in lending, compared to the same period last year.
"Small business is integral to South Australia’s economy," said Mr Reade.
"We understand the unique challenges and opportunities that local businesses are dealing with and this is why BankSA is strongly opposed to the SA Government’s proposed bank tax, along with the clear majority of South Australians.
"The South Australian economy needs investment in jobs and growth, not additional tax burdens."
"We need to provide certainty and consistency in order to attract business investment, and the fact that no other state or territory is implementing such a tax, is testament to the damage it could do to South Australia’s ability to attract investment."
Following a $36 million investment in refurbishments and upgrading branches and technology over the past three years, BankSA continued to improve facilities for customers this year.
New branches were opened at Fulham Gardens and Victor Harbor, and work progressed towards new branches for Unley and Rundle Mall.
BankSA has also grown its support of the South Australian community through a range of partnerships and the BankSA Foundation.
"We have increased our efforts to give back to the community,” said Mr Reade, "and I am particularly proud that the BankSA Foundation has provided more than $309,000 to local charities this year."
"We know that South Australians are doing it tough, reflected in a 224% increase in grant applications to the Foundation compared to the previous year.
"So I’m pleased that over 33,000 South Australians have directly benefited through the delivery of programs and projects supported via the BankSA Foundation this year.
Additionally, BankSA staff have raised more than half a million dollars in the past five years to support South Australians experiencing homelessness through the Vinnie’s CEO Sleep Out, including more than $160,000 this year (the most in Australia), towards establishing a shelter for women and children in crisis, including those fleeing domestic violence.
BankSA makes a significant contribution to the community in South Australia, with several major sponsorships, including its principal partnership with the Fringe festival.
"The Fringe has a significant economic impact on the state, generating $81.4 million1 of additional expenditure as a direct result of last year’s event," said Mr Reade.
"We have also significantly increased our support of the Royal Adelaide Show, becoming the major partner of this much-loved event," said Mr Reade. "And we continue our partnership with Port Power Football Club, and our support for grass roots sports through the SANFL BankSA Rookies program which has provided thousands of dollars back to local clubs across the state."
1 Source: Adelaide Fringe 2017 Annual Review media release, 11 July 2017.