BNK has had a transformational 2023 financial year as the company’s strategic expansion into higher margin lending is starting to deliver returns in a less favourable environment, according to the bank’s head honcho.
BNK has reported a cash NPAT of $1.5 million for FY23, a 30% jump on its full-year results the previous year, and a record-high $1.3 billion growth in its loan book, a 37% surge year-on-year.
Below are the other highlights for the 12 months ended June:
“Our promise from a year ago to achieve cash NPAT profitability in Q4 FY23 – ahead of our initial guidance of FY24 – and our expansion into higher margin assets, were both achieved,” BNK CEO Allan Savins said.
By deepening its alliance with Firstmac via the expansion of the private non-bank lender’s stake in the bank to 19.9%, BNK strengthened its shareholder base.
“BNK’s specialist wholesale funding arrangement with Goldman Sachs saw the acquisition in March 2023 of $150m of these high-margin residential mortgages, which has been a key driver of our cash NPAT profitability,” Savins said.
Moving forward, the BNK chief said the bank will continue its transformation to achieve sustainable profitable growth in the current financial year, with its strong residential portfolio continuing to be the cornerstone by which to build its business.
“Our expansion into the higher margin lending space is on track, and we are targeting a further 20% of our FY24 settlements in higher margin assets,” Savins said. “We are also focused on improving the bank’s cost of funds as this is a critical measure for generating sustainable profitability and achieving our medium-term goal of >2% NIM.”
BNK also committed to continue its investment in process, services, and people to “enhance our capability in areas such as technology, risk, and financial crime and to keep pace with the changing regulatory environment.”
“BNK embarked upon an ambitious business model change in mid-2022 in a drive for sustainable profitability, and we have begun to deliver on our strategy. As we grow and evolve, we expect to keep increasing shareholder value,” Savins said in a media release.
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