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People First Bank has reported significant financial growth and technological advancements in its first full post-merger financial year.
The bank announced a net profit after tax of $41.4 million, reflecting an increase of 29.0% compared to the previous year's $32.1 million. Additionally, there was a 6.2% rise in total loans and advances, amounting to $20.3 billion, up from $19.1 billion. The residential lending portfolio also grew by 6.8%, from $18.3 billion to $19.6 billion.
Retail deposits saw an uplift of 6.9%, reaching $19.0 billion compared to $17.8 billion previously. The overall asset growth for the consolidated entity was 5.0%, escalating from $23.3 billion to $24.5 billion. Moreover, the total capital ratio increased to 15.5%, with a 1.0% rise in Tier 1 Capital during the year ended June 2024.
The bank has embarked on significant technological improvements, striving to establish a modern, cloud-based suite of digital platforms. Collaborating with companies such as Backbase, Salesforce, Simpology, and Firserv, People First Bank aims to deliver exceptional digital experiences and enhanced security for its customers.
CEO Steve Laidlaw stated, "These platforms will enable us to establish the very best digital banking capabilities and leverage innovations like AI." He further emphasised that technology will play a crucial role in potential future mergers: "Technology is now a key factor in merger opportunities. Along with cultural alignment, our leading technology platforms that facilitate easier integration will make us a merger partner of choice."
People First Bank has also opened new wholesale investor channels through the largest senior unsecured debt issue by a customer-owned bank in Australia. Additionally, the bank has seen a significant 15.8% increase in third-party loans via the broker channel, amounting to $3.1 billion compared to the previous $2.7 billion.
The bank experienced an influx of 47,000 new customers and maintained a net promoter score of +32, placing it well above the market average of +13. Steve Laidlaw attributed the institution's success to its collaborative culture and unified team approach, stating, "Our merger succeeded not only due to strategic alignment but because of our shared values. We are all focused on delivering positive change through banking, and that is reflected in these results."
Commenting on the bank's achievements, Laidlaw noted, "Our results this year highlight the strength of our merger and the strategy guiding us forward. By combining a strong cultural foundation with technology investment, we are creating a customer-focused, sustainable and technologically advanced bank positioned for long-term success."
