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High marks for Teachers Credit Union annual results
18 September 2008
Teachers Credit Union released its annual results today, reporting an unprecedented 25% growth in assets.
“We are pleased to have weathered the storms in the ADI sector with strong growth and in excellent financial shape,” said Steve James, Chief Executive of Teachers Credit Union.
“Teachers Credit Union assets reached over $2.4 billion by the end of the financial year. We continued to achieve another year of record lending at $729 million, an increase of 24% from the previous year.”
“With a surplus of $20 million, and reserves now at $216 million, these results demonstrate the solid relationship we have with our members,” said Steve James.
Membership of Teachers Credit Union had reached over 155,000 by the end of the 2007/08 year. A member satisfaction survey carried out in May 2008 revealed a rating of 93%, a considerable achievement generally, and especially in the wider financial services sector.
“As a credit union, our members are our shareholders. Our member value is not only providing better rates and services today, but also retaining profits for future benefits to members.”
“This year’s after-tax profit of $20 million reflects two factors peculiar to this year: the increased cost of funds experienced by all financial institutions following the sub-prime loans fallout; and our decision to shield members from the full impact of the RBA rate hikes for the best part of a year by subsidising our mortgage rates,” said Steve James.
“We value our members loyalty, and never take it for granted.”
“We have been able to mitigate to some degree the effects of the credit crunch by our solid deposit book, as we are not so reliant on external sources of funding as other institutions.”
“With a capital adequacy ratio of 15.8%, and liquidity at around 13%, Teachers Credit Union is one of the strongest ADIs in Australia,” said Steve James.
Solid growth is projected for the year ahead, with initiatives that include an entry to the West Australian market. Teachers Credit Union’s Perth office will open later this year.