Outlook
- Quality of new business is strong, lending momentum is improved and arrears are expected to remain low
- Outlook remains highly competitive and core region remains challenged however:
- Revenue is improving as initiatives continue to contribute improved lending growth outside of the core region (SEQ, Sydney & Melbourne)
- Operating costs are well controlled with necessary investment occurring across technology, distribution and capability
- Branch rationalisation program (8 poor performing branches or duplicated sites closed) will provide strong cost saves in the second half of the 15/16 financial year
- Regulatory focus on investment lending and capital strength are well managed
- Funding market spreads have widened however impacts on Auswide Bank are expected to be modest
- MoneyPlace offers an exciting new distribution and revenue opportunity
- YCU merger expands our SEQ capability and offers strong synergy and growth opportunities
- ROE target of 10% by 6/18 has a defined pathway for achievement
To view Presentation please download PDF attached: