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The mutual bank is set to bring a $10 billion home loan portfolio to its merger deal with Greater Bank.
Newcastle Permanent has released its financial year 2022 result reporting $2.6 billion in home loan approvals, up 7 per cent on last year taking its home loan portfolio to $9.8 billion (up 6.7 per cent).
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Its total assets grew 3.8 per cent to $12.1 billion and delivered a profit outcome of $32.0 million, which marked a decrease on the previous year.
It comes after the federal Treasurer Jim Chalmers announced the merger approval of Greater Bank and Newcastle Permanent Building Society.
The deal would see the two combined have a total asset portfolio of $19.9 billion forming “one of Australia’s largest customer-owned financial institutions”, with around 600,000 customers of which 330,000 come from Newcastle Permanent.
In announcing the result, chief executive Bernadette Inglis said despite the rapidly evolving economic environment, Newcastle Permanent had again performed well across its core businesses of home lending and deposits.
“We’re continuing to challenge ourselves to accelerate growth and help even more customers achieve their dream of home ownership. This was no better demonstrated than in May when we reached the new high of approving almost 1,000 applications in just that one month,” Ms Inglis said.
While total net profit for the consolidated group did decrease to $32 million, Ms Inglis attributed this to the impact of financial market volatility on Newcastle Permanent.
In addition, Ms Inglis said, investment in new technology had contributed to the hit to its bottom line.
The bank has taken “significant strides” forward with technology this past financial year, she said having delivered new payment platforms, adopted digital signatures and digital verification of identity, streamlined online account opening, and enhanced its fraud protection technology.
“This investment combined with expenditure related to our proposed merger with Greater Bank, and important but increasing compliance and regulation, has led to reduced profit this year,” she said.
Merger is the ‘way forward’
Speaking on the merger, chair of Newcastle Permanent board of directors, Jeff Eather, said given the competition against the major banks, merging was the “way forward” to remain competitive.
“Merging with Greater Bank represents an unparalleled opportunity to bring two iconic Hunter-based organisations together to create a financial powerhouse for the region,” Mr Eather said.
“Our merged entity will benefit from our combined strengths, be a more resilient force in the market and enable us to continue to deliver the best value and service to our customers.”
In putting the proposal to members, both customer-owned banks have confirmed the two iconic brands — Newcastle Permanent and Greater Bank — will continue, the merged entity will remain 100 per cent customer-owned and its customer contact centres and headquarters will continue to be based in the Hunter Region.
Eligible members can have their say on the merger with Greater Bank, ahead of a special general meeting planned for 2 November 2022.
[Related: Greater bank and Newcastle Permanent merger gets go-ahead]
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