BNK projects 42% profit rise

BNK Banking Corp reported strong growth in aggregation settlements and in its loan book during the 2021 financial year (FY21), resulting in a surge in profit year-on-year.

Underlying net profit after tax (NPAT) for FY21 is expected to be in the range of $6.7 million to $7 million, an increase of around 36 to 42 cent on the prior year.

After allowing for the one-off impact on ATM losses, the group’s NPAT guidance is $7.3 million to $7.6 million, a rise of 48 to 54 per cent.

Brett Morgan, chief executive of banking and wholesale at BNK, reported the loan book had grown by 42 per cent so far in 2021.

“BNK continues to strengthen its market position and transform its lending returns by increasing the BNK-funded settlements mix,” Mr Morgan said.

Finsure, the bank’s aggregation division, also recounted positive movements. As at 31 March, the business was servicing 1,960 mortgage brokers, while managing a loan book in excess of $52.2 billion.

“Finsure continues demonstrating strong profit and settlement growth. I am anticipating this momentum to continue in the fourth quarter,” John Kolenda, CEO of aggregation, said.

BNK has assumed that its provision for credit losses will be in line with that for the first half of FY21. As at the end of March, BNK had no customers with COVID-related relief packages.

The bank recently signed an agreement with Goldman Sachs, partnering on originating, funding and securitising mortgages.

[Related: BNK Group signs first RMBS program]

Sarah Simpkins is the news editor across Mortgage Business and The Adviser.

Previously, she reported on banking, financial services and wealth management for InvestorDaily and ifa.

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