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Credit Union Australia (CUA) has reported a net interest margin fall of 7 per cent to 1.81 per cent on its mortgage portfolio in the year to 30 June.
According to a report in the Australian Financial Review, CUA’s chief executive Chris Whitehead said intense competition for deposit funds had created pressure as major banks competed with mutuals, while the price of wholesale funding remained high.
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“We held down mortgage pricing and had higher funding costs, but offset this through greater cross selling of products like insurance and cost management,” Mr Whitehead said.
Despite the drop in the company’s mortgage portfolio, CUA posted a solid lift in overall cash earnings for the year to June.
The company posted a 15 per cent lift in underlying profit to $42.9 million, as it offset a squeeze on margins and higher funding costs.
