Super fund-owned ME Bank has lifted full-year profit more than 40 per cent as consumers look beyond the larger lenders examined by the financial services royal commission.
ME on Tuesday reported a net profit of $89.1 million – up from $61.9 million in the prior corresponding period – growing Its home loan portfolio above system despite a softening property market and lifting customer numbers 13 per cent to 474,000.
Chief executive Jamie McPhee believes the banking royal commission has led to people looking closely into how organisations operate beyond the value they deliver to shareholders.
ME’s return on equity fell 20 basis points to 8.1 per cent – compared to about 15 per cent for the big four banks – but in line with the that of regional banks, Mr McPhee told AAP.
He said ME – owned by 26 industry super funds – is trying to strike the balance between shareholder returns and customer value, with consumers receptive following scandals elsewhere such as fees-for-no-service.
“I think it’s a really interesting debate that we’re having now is about what is the sustainable model and what’s the model that genuinely acts in the customers best interest,” Mr McPhee said.
“I do think that is starting to translate to the person on the street.”