BNK Banking Corporation (BNK) has released its financial results for the first half of the 2022 financial year, ended 31 December 2021, documenting an upwards shift in its loan book.
According to the results, the banking group’s total loan book, said to be 98 per cent residential mortgages, increased by 3 per cent from 30 June 2021, growing from $2.47 billion to $2.54 billion.
However, the bank’s funded loan book also grew to $631 million, reflecting growth of 107 per cent compared to results recorded on 31 December 2020.
As confirmed by a BNK spokesperson, more than 99 per cent of BNK’s loan distribution during this time was accomplished via a third party.
The results stated that lending settlements during this first half of the financial year reached $489 million, marking a year-on-year increase of 153 per cent.
Further, BNK’s statutory net profit after tax increased to $2.72 million, accounting for 44 per cent rise to what was reached in December 2021, as well as a drop in its net interest margin (1.32 per cent) compared to the start of the financial year (1.47 per cent).
BNK chairman Don Koch said that the first half of the financial year was a “transformative period” for the group, noting the bank’s sale of its aggregation business, Finsure, to MA Financial Group.
“In the meantime, BNK remains a strongly capitalised bank which continues to strengthen its competitive platform for future growth,” Mr Koch said, stating that group capital adequacy ratio at 31 December is approximately 60 per cent and that the bank has commenced origination of specialist loans through an “alliance” with Goldman Sachs.
He later commented that the “bank remains in a strong position with BNK-funded loan growth over 100 per cent over the year to 31 December 2021 to $631 million”.
According BNK's results for the second quarter of FY22, the non-major bank saw a 21 per cent rise in loan settlements compared to the previous quarter and a rise of 167 per cent year-on-year.
[Related: BNK posts quarterly growth ahead of strategic review update]