Sustainable growth –

Creating customer value


bankmecu grew its assets by 8.07 per cent during 2011/12. This growth came mainly from strong growth in deposits. Loan growth of 4.49 per cent was less than the forecast 5.89 per cent and reflects a falling demand for credit across the Australian marketplace.

Capital growth

In 2011/12 bankmecu exceeded its asset growth target and generated $27.02 million in net profit after tax, being a return on equity of 9.08 per cent.

Customer owned capital increased in 2011/12 from $287.8 million to $311.6 million, or $2,406.14 per customer-owner.

bankmecu’s capital consists solely of customer owned reserves. The bank does not pay shareholder dividends. As a customer owned bank, bankmecu provides a customer benefit through competitive products and services which is delivered in addition to the bank’s return-on-equity. Bank profits build wealth on behalf of its customers by building prudential capital to support future growth.

Capital reserves belong to all customers. They underwrite the business and are reinvested into the business for the benefit of all customers.

bankmecu’s capital adequacy ratio – a measure of the percentage of a bank’s capital to its risk weighted assets –remained strong at 18.5 per cent as at 30 June 2012 and well above the prudential minimum of 8 per cent.

Annual tax paid contributes towards government activity and citizen wellbeing.

Sector consolidation

Whilst bankmecu seeks to capitalise on the opportunities for organic growth provided by its new bank designation, it continues to investigate and pursue strategic merger opportunities where these are consistent with its strategic objectives. No new merger opportunities emerged during 2011/12, while past merger synergies were consolidated further.

Balance sheet

What we own    
Property, plant and equipment  18,682  19,871
Cash and investments  566,271  449,483
Loans to customers (net of provision)  2,210,139  2,114,835
Other assets  41,702  40,620
Total assets  2,836,794  2,624,809
What we owe    
Customers’ deposits  2,471,018  2,231,840
Amounts payable and provisions  54,208  105,153
Total liabilities  2,525,226  2,336,993
Leaving customer owners’ funds    
General reserves  307,520  282,424
Asset revaluation reserve  4,048  5,392
   311,568  287,816


Year 2011/12 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 Differencebetween10/11 &11/12
Income tax $10.0m $10.4m $7.5m $7.2m $7.4m $7.0m $6.9m -0.40%
Fringe benefits tax $0.12m $0.10m $0.11m $0.07m $0.04m $0.04m $0.08m 0.02%
Goods and services tax $1.00m $1.01m $1.1m $0.91m $0.92m $0.94m $0.95m -0.01%
Payroll tax $1.25m $1.14m $1.17m $0.71m $0.56m $0.53m $0.52m 0.11%