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Credit union posts record net profit

Australia’s second-largest credit union has announced a record net profit after tax, as well as strong sales and portfolio growth in the FY15/16. 

On Monday, People’s Choice announced a record net profit after tax (NPAT) of $35.95 million for FY15/16, up from $25.66 million in the prior corresponding period.

The credit union’s total member loans grew by 8.6 per cent to $6.45 billion, with residential loan balances increasing by 10 per cent and personal loans decreasing by 1 per cent.

The company’s member retail deposits increased by 10 per cent to $4.94 billion and general insurance sales also increased by 11 per cent on the prior financial year.

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Chief executive officer Steve Laidlaw attributed the company’s record growth to the surge in young members.

“Of the 23,457 new members People’s Choice welcomed during 2015/16, 44 per cent were under 30 years old,” Mr Laidlaw noted.

The company also reported total assets under management (including loan portfolios under management) of $8.05 billion and funds under advice of $1.59 billion, driving total funds under management and advice to a record $9.64 billion, which was a 7 per cent increase on the previous financial year.

“We recognise that, as a credit union, we offer a genuine alternative for those Australians who have lost trust in the big banks. We don’t have divided loyalties like a bank and this single focus is achieving results,” Mr Laidlaw remarked.

He added that the credit union’s vision is to structure its whole business around a member-centric operating model in order to become “the most trusted financial services provider in Australia”.

[Related: People’s Choice continues support for world-class event]

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