Your Credit Union Is Proud To Report Another Year of Strong Performance
19 October 2017
MEDIA RELEASE: South Australia’s Police Credit Union has reported another year of strong performance including a Customer Satisfaction Rating of 92%, Asset Growth of 10% to $944 million, and a 24% increase in profit after tax to $5.064 million.
Headquartered in Adelaide with over 42,000 customers, Police Credit Union is in its 47th year of operation and is the state’s best-known credit union with independent research revealing it has the strongest recall of any credit union brand in South Australia. New loans funded for the year totalled $254 million, and with insurance policies under management increasing to 29,722 its Chief Executive Officer Mr Costa Anastasiou said that the brand resonated well in the highly competitive market, offering clear choice for customers seeking a better alternative to the major banks. “We have exercised care, diligence and measure in the implementation of our long-term strategy and in the delivery of market leading products and services. Our positive culture, customer-focus, community spirit and agile-innovation have underpinned our many successes, which have helped sustain an average growth rate of 8.5% over the past 10 years”.
Mr. Anastasiou said today that the strong profit result represented another solid performance in a challenging and highly competitive environment. Total Equity increased by 6.8% to $73.2 million, and resulted in a Capital Adequacy Ratio of 14.9%, well above the regulatory minimum. Total Assets grew by 10% to $944 million at year end. This was underpinned by an increase of 12% in loan advances to members, totalling $796 million. The loans portfolio comprises 86% residential, 8% personal and overdrafts, and 6% business loans. This result included the doubling of the business lending portfolio during the period, reflecting positive engagement with the business community who also seek a better banking alternative.
The Credit Union continues to invest heavily in the innovation and enhancement of both its digital and customer facing platforms, recently introducing a new mobile app for Android and iOS devices, and launching its digital Visa wallet on the Apple and Android Pay platforms, enabling state of the art 24/7 transactional banking for customers. The success of a growing senior’s membership base further highlights the appeal of the customer-owned organisation, with the Credit Union recognising the changing needs of a diverse aging population with the launch of the GO SiXTY PLUS product range. Mr Anastasiou said “Not only have we delivered better yields on traditional investment, savings and transactional account holders with this initiative, we have facilitated enhanced retirement-planning options through unique products which enable the unlocking of equity otherwise tied up in residential property and retirement village licenses.”
The Credit Union continued to strengthen its workplace culture around knowledge, learning, engagement, teamwork and resilience, which was reflected in an increase in employee engagement index from 87.49 in 2016 to 89.78 this year. This important investment and positive nurturing of its 136-strong workforce was underpinned with a successful Enterprise Agreement outcome, achieving 95% employee endorsement this year.
During the year, the Credit Union invested a record $414K in major community sponsorships, volunteer programs and charitable donations. “Supporting the broader community is nothing new to our organisation,” Mr Anastasiou said “Over the past 10 years Police Credit Union has invested more than $3.22 million in fulfilling our corporate social responsibility objectives.” The recent announcement of a major sponsorship of Crime Stoppers SA has particularly important relevance with its SA Police heritage. This sponsorship allows Police Credit Union to engage the broader community in encouraging people to provide information that solves and can, at times, prevent crimes.
As part of its pledge to operate in an environmentally sustainable manner, Police Credit Union remains committed to reducing its carbon emissions by at least 5% each year, and is targeting a carbon neutral position by 2020. During the 2016-17 year it exceeded this target, achieving an 11.4% reduction in carbon emissions.
Find out more about our great year in our 2017 Annual Report.