Teachers Mutual’s mortgage lending soars

Teachers Mutual’s full-year profit fell by 15 per cent to $27.06 million but the member-owned lender grew its mortgage portfolio by three times the industry average.

Teachers Mutual says its owner occupier and investor home loans grew by 9.76 per cent to $5.9 billion in the 12 months to June 30, compared to system growth of 3.03 per cent, with the profit drop due to tighter margins across the industry.

“To grow our home loan book at three times system, nearly 10 per cent, is a fantastic achievement in a year where the housing market struggled overall,” chief executive Steve James said.

Household deposits rose by $695 million to more than $6 billion, the most of any Australian mutual.

Teachers Mutual, which operates the Teachers Mutual Bank, Uni Bank, Firefighters Mutual Bank and Health Professionals Bank, grew its membership by about 3.3 per cent over the year and is Australia’s second largest mutual with more than 205,000 members.

“People join us because they know we will put their needs first and use their money responsibly,” Mr James said.

Teachers Mutual Bank had a net promoter score of 52.6 in Roy Morgan’s July 2019 industry report, the highest of any financial institution in Australia.

Westpac-owned Bank SA in 11th was the highest placed big four-owned institution, with Commonwealth Bank the best regarded of the majors with a score of 7.2 in 15th place.

AAP

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