Wednesday, 26 September 2018 11:42

ME Bank boosts profits with strong growth


Online bank ME has achieved earnings of $96.5 million for the full year 2018 — an increase of 13% on 2017 — and attributes its results to strong growth.

The industry super fund-owned bank says statutory profit after tax — which includes a realised gain on hedging instruments ($3.6 million), and spending on IT projects ($10.9 million) — was $89.1 million, up from $61.9 million in 2017.

ME chief executive Jamie McPhee said: “It is vitally important to have a bank directly aligned with the interests of customers performing strongly, particularly in the current environment.

“ME is owned by industry super funds and is charged with helping all Australians get ahead. Realising that mission is about growing our business and reaching more customers.”

McPhee said earnings growth reflected a 7% increase in the bank’s asset portfolio to $28.3 billion and higher net interest margin, up 12 basis points to 1.62%, on the previous financial year.

“Underlying earnings have grown at an annual compound rate of 19% since June 2014,” he said.

“Our home loan portfolio grew 1.3 times the industry average due to $6.2 billion in new home loan settlements.

“Customer deposits grew 17% to $14.8 billion while household deposit growth topped the industry, up 27% or nearly five times the industry average, and provided improvements to the quality of ME’s funding profile while ensuring consistently high rates of return for customers.”

 “Customer numbers grew 13% to 474,000 and have increased at an annual compound growth rate of 11% since June 2014.

“Underlying return on equity of 8.1% was in line with target. The cost-to-income ratio was 64.5%, a slight increase due to accelerated amortisation of legacy software systems.”


As part of our Lead Machine Methodology we will help you get more leads, more customers and more business. Let us help you develop your digital marketing campaign

Digital Marketing is ideal in these tough times and it can replace face to face marketing with person to person marketing via the phone conference calls and webinars

Significant opportunity pipelines can be developed and continually topped up with the help of Digital Marketing so that deals can be made and deals can be closed

- Newsletter adverts in dynamic GIF slideshow formats

- News site adverts from small to large sizes also as dynamic GIF slideshow formats

- Guest Editorial - get your message out there and put your CEO in the spotlight

- Promotional News and Content - displayed on the homepage and all pages

- Leverage our proven event promotion methodology - The Lead Machine gets you leads

Contact Andrew our digital campaign designer on 0412 390 000 or via email



Security requirements such as confidentiality, integrity and authentication have become mandatory in most industries.

Data encryption methods previously used only by military and intelligence services have become common practice in all data transfer networks across all platforms, in all industries where information is sensitive and vital (financial and government institutions, critical infrastructure, data centres, and service providers).

Get the full details on Layer-1 encryption solutions straight from PacketLight’s optical networks experts.

This white paper titled, “When 1% of the Light Equals 100% of the Information” is a must read for anyone within the fiber optics, cybersecurity or related industry sectors.

To access click Download here.


Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



Recent Comments