Media release: The Co-operative Bank delivers consistent and fair profit in full-year result

Monday 27th May 2024

The Directors of The Co-operative Bank have today released the bank’s Annual Report and Disclosure Statement for the year ended 31 March 2024, with a $20.2 million reported profit before rebates and tax demonstrating continued growth and fair and sustainable profitability.

The Co-operative Bank’s profit was up 9% on $18.5 million reported profit before rebates and tax in the year ended 31 March 2023.

Chief Executive, Mark Wilkshire, said The Co-operative Bank’s continued commitment to its customers, who collectively own the bank, supported positive full-year results across key metrics, including:

• Total customer numbers of 181,718 (up 3% year on year)

• $3 billion of home loan lending (up 8% year on year)

• $3 billion of total deposits (up 7% year on year)

• $854 million of KiwiSaver funds under management through Fisher Funds (up 22% year on year)

• $2.5 million in customer rebates

• #1 for customer preference (Consumer NZ People’s Choice Award 2024)

“It was a year of steady growth for The Co-operative Bank, delivering consistent, and sustainable profitability, underpinned by our purpose to grow together and share the gains with our customers” Wilkshire said today.

“This year, we saw more New Zealanders finding out what it means to bank better as part of a co-operative. We have seen strong growth in home loan customers, and we are proud to have helped many New Zealanders into their first homes,” said Wilkshire.

Thirty percent of customers who drew down home loans with The Co-operative Bank in the past year were first home buyers.

“In the current environment, with cost-of-living challenges for many New Zealanders, we are happy to be able to help customers to purchase their first homes,” said Wilkshire.

“Overall, I am really pleased with our results, in customer satisfaction, balance sheet growth in lending and deposits, and our team’s contribution. We are growing and strive to be a leader in delivering high quality customer service and fair rates. We adamantly believe when we put people first, banking gets better for everyone.”

The Co-operative Bank’s profits will remain in New Zealand, with $2.5 million to be shared with customers as profit rebates and the remainder to be reinvested in the co-operative.

“We have a forward-looking investment pipeline in place, so as well as sharing rebates with customers, we are investing in the people and technology we need for the future of the co-operative. This includes replacing our core banking system – a once in a generation investment – as well as other future-focussed projects looking at customer needs and products,” says Wilkshire.

The Co-operative Bank was rated by customers as top in customer satisfaction out of all banks in New Zealand and was the 2024 winner of Consumer’s People’s Choice Award in banking. The Co-operative Bank has won the Consumer People’s Choice Award for 8 of the last 9 years.

“We are pleased that our focus on putting our customers first is felt by our customers, and always see this as a challenge to do even better going forward. This is helped by the fact that our customers are our owners, so they really are at the heart of what we do.”

Financial highlights FY24 FY23

Profit before rebates and tax $20.2m $18.5m

Rebates returned to customers $2.5m $2.5m

Mortgage loans $3,001m $2,783m

Customer deposits $3,022m $2,834m

Capital ratio 17.8% 16.6%

ENDS

The Co-operative Bank’s full Annual Report is available at www.co-operativebank.co.nz/about-us/financial-information

About The Co-operative Bank

The Co-operative Bank is the only bank in New Zealand to share its profits with its customers. We offer what you’d expect from a bank – accounts, lending, insurances and more but we’re truly different from other banks in that we’re owned by our customers and we were built on the idea of giving back. Since 2013 we have shared $20 million with our customers in the form of rebates. We have a national network and a team of 400 people supporting more than 180,000 customers across New Zealand.

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