Broker channel focus contributes to bank’s strong financial results

Customer-owned bank People First Bank has released its inaugural full financial year results post-merger, revealing “above-system” increases in its lending and deposits.

The bank reported a 6.2 per cent increase in total loans and advances, up to $20.3 billion from $19.1 billion, along with growth in its residential lending portfolio from $18.3 billion to $19.6 billion, an increase of 6.8 per cent.

Notably, People First Bank attributed a portion of this growth to its growing focus on the broker channel, which reported $3.1 billion in third-party loans, an increase of 15.8 per cent on the $2.7 billion recorded in the year prior.

Additionally, the amount of third-party loans increased by 9.2 per cent on the previous year, up to 6,787 loans.

People First Bank reported “robust” NPAT of $41.4 million, up by 29 per cent from $32.1 million year on year, along with retail deposits of $19 billion, which was up 6.9 per cent from $17.8 billion.

Steve Laidlaw, the freshly appointed CEO, said that the bank’s “one team” culture was key to its success.

“Our merger succeeded not only due to strategic alignment but because of our shared values. We are all focused on delivering positive change through banking, and that is reflected in these results,” Laidlaw said.

“Our results this year highlight the strength of our merger and the strategy guiding us forward.

“By combining a strong cultural foundation with technology investment, we are creating a customer-focused, sustainable and technologically advanced bank positioned for long-term success.”

According to the bank, a central part of its strategy is a focus on “digital enablement, simplicity and a commitment to doing good” with it being well positioned in building a modern suite of digital technology banking platforms.

People First Bank has partnered with digital tech providers including Backbase, Salesforce, Simpology, and Fiserv to create a “best-of-breed” suite of cloud-based technology platforms.

Laidlaw said: “Our investment in technology will ensure a simple, secure, world-class banking experience, no matter how our customers choose to bank with us.

“These platforms will enable us to establish the very best digital banking capabilities and leverage innovations like AI.

“Technology is now a key factor in merger opportunities. Along with cultural alignment, our leading technology platforms that facilitate easier integration will make us a merger partner of choice.”

[RELATED: People First Bank announces new CEO]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.