Heritage Annual General Meeting told of the Society’s record achievement
The Annual General Meeting (AGM) of Heritage Building Society today heard that despite the most difficult financial environment encountered, that the Society had not only achieved but over achieved.
Addressing the meeting, Heritage Chairman Mr Brian Carter presented his report highlighting the trend of preceding record profits had continued.
“I am pleased to confirm the Society’s tenth consecutive record pre tax profit result, a ninth consecutive record post tax profit,” Mr Carter announced.
“Looking at last year’s record results it can be noted that the Society’s overall lending was somewhat reduced. Let me highlight that we deliberately controlled our lending in the context of the Global Financial Crisis which made it extraordinarily difficult for financial institutions to raise wholesale funds and where you could raise them, the cost was prohibitive.
This position was exacerbated by the Federal Government’s cost of Government Guaranteed funds which unfairly favoured the major banks at the expense of other financial institutions.
“This was also done to ensure that we maintained excellent levels of capital adequacy and liquidity. Additionally, we have a level of arrears that most financial institutions would give their eye teeth for even in the best of financial times as distinct from the current climate.”
Mr Carter drew members’ attention to the two product issues, both of which were firsts for Australian mutual organisations.
“The first was a Government Guarantee wholesale debt issue in which the take up was so much better than expected that we raised the total of what we had hoped to achieve in two such issues.
“Currently we are in the position of finalising a public term subordinated debt issue at a fixed rate of 10% for the first five years. It has been extremely successful and heavily oversubscribed. The amount sought to be raised as specified in the prospectus was exceeded in the book build before the prospectus was even lodged. This success gives us a great deal of confidence as we move forward into a new post financial crisis era.”
At the conclusion of the AGM a Special General Meeting (SGM) was held to deal with the Society’s constitution and to position some additional routine and non controversial amendments.
Concluding his address the Chairman stated, “Heritage Building Society is well placed for the future and we will continue with the same overall prudent approach as we have had in the past.”
“On behalf of all our Society members, I place on record my appreciation of the CEO Mr John Minz, the Senior Executive Group, Management and staff and by no means last my Board colleagues for what Heritage has achieved to date.”