A continued disciplined approach to the execution of the Group's five strategic priorities has delivered another good result.
Retail Banking Services
Retail Banking Services continued to perform well with cash net profit after tax of $2,461 million, up 17 per cent.
The result reflects strong volume growth, and continued focus on cost efficiency partially offset by a decrease in net interest margin. Impairment expenses increased slightly due to volume growth and increased arrears levels in the current economic environment. Average home loan volume growth was 18 per cent, driven by competitive customer interest rates and strong growth in the first home buyer market. The Group retained its number one market share position in deposits, maintaining a significant gap to the nearest competitor.
Key highlights for the year included the successful migration of over one million term deposit accounts to the new Core Banking platform, ongoing NetBank enhancements and continued improvement on security and functionality of the ATM network.
The progress of these initiatives has been recognised by:
- Money Magazine "Money Minder of the Year 2010";
- Third Party Banking awarded "Lender of the Year 2010" by Mortgage and Finance Association of Australia for the second year running;
- Australian Financial Institution of the Year (Retail)” at the 2010 Australian Banking and Finance Awards; and
- Five star rating to the entire rated Retail Deposit product suite by CANSTAR CANNEX and an innovation award for Travel Money Card.