Newcastle Greater Mutual Group Ltd (NGM Group) has announced a strong annual result for Financial Year 2024, confirming its position as one of Australia’s best-capitalised and largest customer-owned banks, on the back of outstanding customer satisfaction and growth following the March 2023 merger between Newcastle Permanent and Greater Bank.
NGM Group 2024 Annual general meeting
Group highlights
- Net profit after tax of $131.1 million, bolstered by digital innovations and enabling significant investment in customer offerings and community programs.
- Underlying net profit after tax of $104.6 million, with $21.2 billion total assets and $1.9 billion net assets.
- Regulatory capital adequacy ratio of 22.8% and regulatory liquidity ratio of 18.4%, both well above prudential requirements.
- Home loan portfolio of $16.8 billion, significantly outpacing the sector with 9% growth year on year.
- More than 80% of customers ahead on home loan repayments and arrears over 90 days well below sector average at 0.08%.
- Customer deposits of $17.6 billion, with 6.4% growth continuing to deliver liquidity and funding from our strong retail deposit portfolio.
- Total customers now passing 620,000, with NGM Group’s reputation for innovation and service attracting loan applications from across Australia.
- Market-leading capital ratio of 22.8%, continuing to make the Group one of the best-capitalised ADIs (Authorised Deposit-taking Institution) in Australia.
- Roy Morgan customer service ratings significantly surpassing the major banks.
- More than $6 million invested in community programs, sponsorships, and charitable foundations to help the Hunter and surrounding regions thrive, a substantial increase on the $4.5 million annual commitment.
- Launch of Newcastle Permanent’s innovative digital-first home loan, allowing customers to complete a home loan application in 15 minutes and be approved within hours.
- Four million scam awareness messages sent to educate customers and communities about cyber-crime, with continued investment in cyber resilience and enhanced security capabilities.
- 34 awards recognising value across a competitive range of home loans, savings accounts, and customer service.
Chair Wayne Russell said these results for NGM Group lay strong financial foundations for the future and build on the brands’ long histories of putting their customers first.
“We set ambitious benchmarks in our first year and we’ve stayed true to the legacy of our brands by demonstrating our service to both our customers and the community,”
Wayne Russell, NGM Group Chair.
Strong results to build regional futures
NGM Group achieved a net profit after tax of $131.1 million and underlying net profit after tax of $104.6 million, significantly enhancing the bank’s financial resilience and ability to build and innovate for its customers.
“This profit result and the increase in our capital adequacy ratio to 22.8% means we continue to be one of the best-capitalised ADIs in Australia,” Mr Russell said.
NGM Group CEO Bernadette Inglis said the Group’s strong financial result has allowed it to further invest in regional communities central to its core purpose.
“As a customer-owned bank, our profits are used to further invest in our business, our people, and our community programs and build even better products and experiences for the more than 620,000 customers who bank with us,” Ms Inglis said.
Bernadette Inglis, NGM Group CEO.
This saw over 1,300 development opportunities offered to NGM Group employees with tailored training for leaders at all levels introduced. More than 300 employees were also given the chance to undertake new roles, over a third of which were promotions.
A champion for all members
Throughout the year, NGM Group helped more than 11,000 customers with new home loans, including over 1,300 first home buyers, while more than 27,000 new savings or transaction accounts were opened.
“Our focus on helping our customers achieve their home ownership dreams and providing a competitive offering with improved experiences meant our home loan portfolio grew 9% to $16.8 billion, significantly outpacing the sector,” Ms Inglis said.
“While our arrears rate remains among the lowest in the sector, with 80% of customers ahead on home loan repayments, we will be looking closely at how we can continue to support our customers through cost-of-living pressures.
“The Group’s deposit book growth continues to be strong with our customer deposit balances growing 6.4% over the year to $17.6 billion.”
Enhanced product and service innovation
NGM Group’s strong performance has allowed it to invest in innovative products to meet customers’ needs, both now and in the future.
“We’re particularly proud of our first digital home loan, launched through Newcastle Permanent, which offers our customers a convenient and quick new way to complete a home loan application in 15 minutes,” Ms Inglis said.
Since launching, Newcastle Permanent has received applications from every Australian state and territory.
“We look forward to introducing the service to Greater Bank customers soon and expect a similar level of interest. Our customers continue to adopt digital banking, with 97 per cent of transactions now completed through digital channels,” she added.
As part of the program of continuous enhancements, NGM Group invested in upgrading its apps and helping to alert members to sophisticated scams. Additional upgrades are planned for the coming year to better serve and protect customers.
“Branches will always play an important role and we’re proud to have delivered enhancements to more than 45 branches including $2.2 million invested in significant upgrades in Singleton, Shellharbour and Erina,” Ms Inglis said.
Giving back to our communities
While community has always been a key focus for Greater Bank and Newcastle Permanent, the 2023 merger has allowed both brands to substantially increase their impact.
More than $6 million was invested in community programs, sponsorships, and charitable foundations during the year, a substantial increase on NGM Group’s annual commitment of $4.5 million.
“We significantly surpassed the target we set for community investment with the charities, sporting and cultural organisations, and grassroots initiatives we support because we’re committed to helping regional communities thrive,” Ms Inglis said.
As part of the Group’s commitment to the regions it serves, a groundbreaking partnership has been formed with the University of Newcastle’s Institute for Regional Futures, which will explore how industries, governments, and events can help shape the lives of regional Australians.
The Group’s strong financial results have seen significant community investment continue into the new financial year, with an innovation partnership between Newcastle Permanent and the Hunter Medical Research Institute recently launched to advance the impact of medical research and nurture early-stage local talent, powered by a $2 million donation.
“As regional NSW undergoes an economic transformation, we want to deliver new opportunities to advance our communities,” Ms Inglis said.
In addition to NGM Group activities in Financial Year 2024, both Greater Bank and Newcastle Permanent continued the work of their charitable foundations supporting 25 partners with new projects and programs, including those tackling issues recently prevalent in national conversation such as homelessness and domestic violence.
