Friday, October 23rd, 2009 - Rural Bank
Rural Bank CEO Paul Hutchinson has responded to KPMG’s annual regional banks’ performance survey released yesterday (21 October), saying the Bank continues to carve out a place in Australia’s regional banking landscape using specific strategies targeted at these communities.

“We posted a strong result for the 2008/09 financial year with a 10 per cent increase in net profit after tax, which continues the Bank’s trend of delivering double digit profit growth each year,” Mr Hutchinson said.

“Rural Bank's Return On Equity (ROE) stands at 14.2 per cent, which is stronger than the regional bank average and above that of the majors, whose combined average was just 13 per cent in 2009, as reported by KPMG.

“Our funding mix has always been a great strength with 40 per cent of our deposits now coming from metropolitan-based customers. In contrast to some of our competitors, we do not have to rely on wholesale funding or government guarantees as 95 per cent of Rural Bank’s funding comes from retail markets.

“Rural Bank’s business strategy is focused squarely on our core competencies of sourcing personal and business deposits and providing financial services to the agribusiness sector. We do not offer consumer lending, such as personal loans or home loans, and as a result are in a better position to manage our operations and margins.

“Rural Bank’s specialised strategy, combined with our localised sales and distribution points, places the Bank in a prime position to provide tailored services to rural and regional personal and business customers.

“Furthermore, our recent rebrand signals a new era for the Bank and we are focusing on product and service development for customers, as well as exploring network expansion opportunities.

“We’re proud of our growth and we’re taking up the challenge to provide a safe, secure and credible banking alternative for all Australians. As an Australian-owned bank every cent deposited in Rural Bank is reinvested in Australia and that’s something that sets us apart from the rest.”

Other key points from Rural Banks 08/09 results included:

• Rural Bank’s net profit after tax was $45.1 million (compared to $41.1 million the previous year).

• Loans under management increased slightly ($3.679 billion compared to $3.650 billion in 07/08) due to the general appetite for credit reducing in the market place.

• Ratio of net non-performing loans to gross loans under management increased to 0.62 per cent (2008: 0.33 per cent). The increase was solely due to a single account that had been sufficiently provided for in the accounts. Adjusting for the account, net non-performing loans improved to 0.27 per cent.

Contact Profile

Rural Bank


Rural Bank was established in 2000 as Elders Rural Bank and is one of Australia’s leading banks servicing rural and regional Australia with more than 35,000 customers and assets under management in excess of $3.7 billion. Rural Bank’s products and services are available at more than 250 outlets throughout Australia, including selected Bendigo and Adelaide Bank and Elders Rural Services branches. For more information visit www.ruralbank.com.au
Alison Michell
P: 0417 873 855
W: www.ruralbank.com.au

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Rural Bank CEO Paul Hutchinson has responded to KPMG’s annual regional banks’ performance survey released yesterday (21 October), saying the Bank continues to carve out a place in Australia’s regional banking landscape using specific strategies targeted a

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