Police Credit Union gets a big tick of approval from customers, by delivering another year of strong financial performance
15 October 2020
Police Credit Union has strengthened its reputation as the credit union of choice for savvy consumers by achieving another near-record Member Satisfaction Rating of 92.9%, while total assets grew to $1.174 billion and a profit after tax result of $5.2 million was achieved.
Police Credit Union CEO, Mr Costa Anastasiou, said the strong results had been achieved through a winning combination of prudent financial management, a sector-leading workforce committed to customer-service excellence and highly competitive products and services.
“Our organisational resilience planning meant that when customers and the broader community had their resolve put to the test by devastating local bushfires, economic uncertainty, international turmoil and then the global pandemic, we were ready and able to quickly respond and offer whatever help was needed,” Mr Anastasiou said.
Mr Anastasiou said the organisation’s focus went beyond just the physical health and safety of customers but to also ensure their financial wellbeing during one of the hardest periods of their lives. This included offering a loan repayment pause for all mortgage holders and hardship assistance to take the pressure off the household budget for 288 borrowers experiencing significant financial difficulty, which saw the organisation’s total pandemic assistance activities exceed more than $74.6 million.
While the reporting period was anything but business as usual, Police Credit Union delivered another year of strong financial performance across all metrics despite contracted growth under volatile economic conditions. These positive results include a 3.4% increase in total assets to $1.174 billion and a 6.6% increase in profit after tax of $5.2 million. The organisation reduced operating costs by 2.4% in the reporting period, despite mobilising 32% of the workforce to work from home or disaster recovery sites, increasing Contact Centre hours and continued recruitment, whilst maintaining 100% of staff hours during the pandemic.
Prudent management of deposit and loan interest rates ensured a fair balance was maintained between borrowers and depositor rates and resulted in a sustained competitive position for customers.
“Careful strategic and prudent balance sheet management with continued disciplined focus on building scale and efficiency, alongside well-planned response and recovery frameworks, saw us well-prepared to deal with the pandemic with foresight. The financial position of Police Credit Union remains very strong, including the level of our liquidity and capital,” Mr Anastasiou said.
“During the period we advanced $257.4 million in loans to Members, comprising 2,426 loans in total. We were particularly pleased to see our Business Banking team also achieve strong growth results during the year, with $77.5 million of loan disbursements that grew the portfolio to more than $120 million, including the funding for construction of 155 new houses and 45 land allotments —a welcome commitment by those doing it tough in the local building and construction sector.”
“In addition, we were particularly pleased to also make over a half-million dollar contribution to the community through partnerships such as a three-year renewal of our major sponsorship of Crime Stoppers South Australia, as well a major partnership with the CFS Foundation in support of SA Country Fire Service volunteer firefighters,” he said.
“Getting behind a number of not-for-profit organisations that continue to make a real contribution to community safety meant they could not only weather the pandemic but come out of the other side in a position where they can thrive and continue to make a difference. We also used the year to strengthen our significant support of the many police officers, paramedics and nurses working on the front line through enhanced programs and personal engagement initiatives.”
“During the last 50-years we have worked hard to support customers throughout periods of personal, national and international hardship, including the Global Financial Crisis of 2008 and economic recessions in the early 1980s and 90s. The 2020 financial year has been another opportunity to demonstrate our market-leading experience and commitment and show that Police Credit Union is here for the good times, challenging times and everything in between.”
Police Credit Union’s key highlights of the Financial Year 2019-20 include:
- Near-record Member Satisfaction Rating of 92.9%.
- 3.4% increase in total assets to $1.174 billion.
- 6.6% increase in profit after tax of $5.2 million.
- Increased Member Reserves by 6.6% for the period to $88.8 million.
- 90.3% Employee satisfaction score.
- 2.4% reduction in operating costs despite enhanced services in response to the pandemic.
- $257.4 million in loan disbursements comprising 2,426 loans in total.
- Official opening of a new branch in Palmerston, NT.
- Gold award wins at the 2019 Mozo Expert Choice Awards in the Green Personal Loan and Car Loan award categories.
- Maintained a carbon-neutral status.
About Police Credit Union
Formed in 1970, Police Credit Union is proudly South Australian based and headquartered, boasting a 92.9% Member Satisfaction Rating, an Employee Satisfaction score of 90.3%, total assets exceeding $1.174billion, and delivering Better Banking services to over 46,000 customers. As the most recognised credit union brand in South Australia, Police Credit Union is firmly committed to building enhanced capability in the delivery of both traditional face to face branch banking and local call centres, and innovative, convenient and secure digital architecture. Supporting better communities and reducing our environmental impact represent intrinsic pillars of Police Credit Union’s corporate strategy. A strong sense of corporate social responsibility spans initiatives both large and small, including a long-standing partnership with the Police Association of South Australia, Major Sponsorship of Crime Stoppers South Australia, the CFS Foundation and Adelaide Football League, and a 23-year commitment in bringing the Credit Union Christmas Pageant to the streets of Adelaide, representing but a few examples of the organisation’s community investment over its 50 year plus history. Police Credit Union has helped thousands of South Australians and Territorians achieve their financial goals and aspirations, with competitive and high value Better Banking products and services. The multi award-winning, values-driven, Member-owned organisation offers a full suite of market leading loan and investment products, 24-7 Online, Mobile and App banking, Fast Payments, Apple Pay, Google Pay, and Samsung Pay, and branches across SA and NT.