Customer growth key to Heritage Bank’s future path

Attracting additional customers is a key plank in Heritage Bank’s strategy for future growth, Chairman Mr Kerry Betros told today’s Annual General Meeting in Toowoomba.


Mr Betros said Heritage Bank had adopted a new corporate strategic plan that will help re-shape the business to the changing demands of the increasingly digital banking environment. It will also look to expand Heritage’s long-term commitment to the mortgage broker channel to grow its national footprint.


“Customers, staff and community remain squarely at the centre of everything we do,” Mr Betros said.


“At the same time, we have to keep evolving as our operating environment evolves.


“Our strategic plan acknowledges our need to attract and grow new customers.  It also commits us to respecting and deepening our relationship with existing customers, who have helped build us into the bank we are today.


“Our plan highlights the need to attract and develop passionate staff members, who will enable us to deliver the services that our customers demand.


“And it clearly sets out a mandate to modernise the way we operate, simplify our processes, and become easier to do business with.


“We’re looking to more firmly establish our presence on the national stage as an alternative to the listed banks, especially via our mortgage broker partners.


“We’ve been operating in the mortgage broker market for 20 years and we will leverage that experience to achieve further growth around the country.”


Mr Betros said Heritage was also focused on continuing to deliver customers the benefits of the customer-owned value proposition.


“Independent research by analysts Canstar found that our customers were $50 million better off by banking with Heritage rather than the big four banks last financial year,” he said.


“We also ended the year with the highest Roy Morgan customer satisfaction rating of any financial institution in Queensland at 94.3%.


“We’re a customer-owned bank and we never lose sight of our core responsibility to give our customers great value and great service


“We’re also committed to continuing to supporting local communities. We put more than $600,000 into sponsoring and supporting events in our local communities last year, as well as raising almost $75,000 for charities through our annual golf day and calendar sales.


“In addition our seven Community Branches have collectively put more than $37 million back into their local communities, through funding grants, wages, rent and payments for other goods and services, since the first was established in 1999.”


Mr Betros said Heritage had recorded another year of solid results in 2015/16. The pre-tax profit of $51.11 million was up 6.46% on the previous year; similarly the after tax profit was $36.14 million, up 7.53% on 2014/15.


Loan approvals were down slightly (3.26%), reaching $1.78 billion in 2015/16 compared to $1.84 billion in the previous year.  Total consolidated assets were also marginally lower, down from $8.56 billion to $8.44 billion.


However retail deposits grew strongly, up by $294 million (6.05%) to $5.16 billion.


Mr Betros said the second half of the 2015/16 financial year had seen strong growth in lending and deposits, and Heritage would look to build on that momentum to continue growth in 2016/17.

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

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