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Announcing annual results for the past financial year, CEO Andrew Hadley said the nature of the times demanded the Group act conservatively.

"Even though there are signs the economic fallout of the pandemic may not be as severe as predicted earlier in the year, we firmly believe it is in the best interests of our members to be well prepared for any downside risk," Mr Hadley said.

"Notably this includes a decision to significantly lift credit provisioning especially in case of increased defaults in the home mortgage market."

Mr Hadley said the decision to raise a $10.7 million COVID-19 related provision was one of a number of factors resulting in the fall in the Group’s net profit after tax (NPAT) to $3.2 million.

"The 69% decrease in NPAT is very much an extraordinary result reflective of other factors including one-off merger and integration costs and an additional provision raised against a legacy property development exposure," he said.

"While we have maintained net interest margins and managed costs well, accounting standards require us to provide for future expected credit losses, even though they have yet to be realised.

"On a normalised basis, profit after tax would have increased by 28% year-on-year, which would have been some 12% down on post-merger budget expectation," Mr Hadley said.

A highlight for the Group was the merger between Police & Nurses Limited (trading as "P&N Bank" in Western Australia) and the former BCCU Ltd (trading as "BCU" in NSW and south east Queensland) in November 2019, resulting in each unique customer-owned banking brand operating under the Group’s banking license.
Following the merger, Group assets increased to over $6 billion with loans under management up by 38% and total deposit balances up by 56%.

The Bank's capital adequacy ratio of 14.84% remains sound and each banking brand continues to enjoy continued member growth, strong member advocacy and high staff engagement.

"It’s certainly been a defining year for our Group with the successful delivery of our merger and new five-year strategic plan that will build further size and scale for our Group," said Mr Hadley.


Summary of FY 19/20 results

  • The Group delivered net profit after tax of $3.2 million, down 69% from $10.3 million the previous year.
  • Group net interest income increased by 38% to $103.9 million.
  • Non-interest revenue and other income increase by 11% to $17.6 million.
  • Credit impairment losses increased to $13.3 million.
  • Other expenses increased by 42% to $103.6 million.
  • Total Group assets increased to $6,182 million.
  • Total member funds increased to $445 million.
  • The Group’s capital adequacy ratio remains strong at 14.84%.
  • Total membership numbers stand at 156,925.


Download the Police & Nurses Limited Annual Report 2020