| 2012 | 2011 | % Change | |
| Value of customer owned assets | $2,837m | $2,625m | +8.07% |
| Loans | $2,210m | $2,115m | +4.51% |
| Deposits | $2,471m | $2,232m | +10.72% |
|
Cannex valuation of customer benefit in better rates and lower fees (in comparison with Big 4 banks) |
$20.14m | $31.17m | -35.4% |
| Community Investment Program | $1,143,745 | $1,141,360 | +0.21% |
| Conservation Landbank | 761.4 hectares | 657.8 hectares | +15.75% |
| The average value of each customers’ banking | $36,523 | $33,000 | +10.68% |
In 2012 bankmecu is presenting its customers and stakeholders with a concise Annual Report of performance against its Strategic Plan. This report is supported by detailed data available through a dedicated website.
bankmecu is one of three Australian companies – and the only Australian customer owned business – participating in an international pilot project being run by the International Integrated Reporting Council (IIRC).
Through this report, bankmecu aims to more concisely communicate its financial and non-financial performance against business strategy. It aims to demonstrate the links between business strategy and the creation of shareholder value.
As Australia’s first customer owned bank, bankmecu is inspired to enhance the economic wellbeing of its customers in responsible ways. bankmecu is owned by its customers. It exists to serve its customers who as owners have an equal say in how the bank conducts its business on their behalf.
During the year, bankmecu maintained its record of sustainable development and strong financial performance. It met its growth, profitability and prudential capital targets. However, rather than rewarding external investors, bankmecu profits are owned by its customers. Being accountable to its customers and sharing the bank’s profits in this way helps ensure it conducts the business in more sustainable and responsible ways.
bankmecu seeks to have its brand represent leadership in responsible banking performance. This year, bankmecu became the first Australian member of The Global Alliance for Banking on Values. bankmecu is also signatory to the United Nations Environment Programme Finance Initiative, United Nations Global Compact and United Nations Principles for Responsible Investment.
bankmecu produced its 2nd Reconciliation Action Plan in collaboration with Reconciliation Australia.
Customer satisfaction remained at 94 per cent. bankmecu’s high level of staff satisfaction increased to 88 per cent. The Employer of Choice result remained steady at 87 per cent.
International rating agency Standard & Poor’s reaffirmed the Bank’s investment grade credit rating – BBB+/Stable/A-2.
As at 30 June 2012, there were 129,502 customers. Seventy seven per cent of customers continue to live in Victoria with 9 per cent in Queensland, 5 per cent in New South Wales, 3 per cent in the ACT.
The total value of community sector banking increased 23.91 per cent during the year. Customers from the community/social enterprise sector now represent fifteen of bankmecu's twenty largest investors.
Two pieces of commissioned research indicate prospective new customers are generally younger; living in metropolitan areas with middle incomes; are motivated by ethics and community mindedness, and have or are planning to have a family.
The National Service Centre answered 256,749 calls, 83.74 per cent of which were answered within 40 seconds of the customer selecting their option.
Canstar Cannex assessed that bankmecu customers were collectively $20.14 million better off than they would have been with the average of the four major banks.
To date, bankmecu has offset 41,263 tonnes of CO2-e in its Conservation Landbank for cars financed and committed a biodiversity offset of 78,622 square meters for new home construction loans financed.
bankmecu experiences one of the lowest levels of impaired loans of any bank, credit union or building society in Australia.
bankmecu purchased 2,002 tonnes of offsets to achieve carbon neutral operations.
Peter Crocker and Geoff Russell retired from the Board, replaced by Judith Downes and Greg Camm. Damien Walsh became Managing Director replacing former Chief Executive Officer, Phylip Doughty.
Total Board remuneration approved by the 2011 AGM was $491,270 per annum for 7 non-executive directors including all benefits and relevant taxes.
Risk management assessments are conducted annually and as required. bankmecu has in place a Staff Charter to guide staff behaviour.
bankmecu has had no incidence of non-compliance with any law or regulatory code of conduct.
External card fraud continues to be the main source of corrupt practice. bankmecu launched a round the clock card Fraud Bureau Service.
bankmecu’s credit delinquency ratio decreased to 0.26 per cent of the total loan portfolio. 2011/2012 also saw a reduction in total provisions for impaired loans.
The bank increased business productivity to $9.6 million of assets per FTE.
bankmecu’s return on average assets decreased to 0.99% per cent.
bankmecu’s cost to income ratio increased to 57.73%.
bankmecu’s Environmental Management System (EMS) continued to guide environmental performance improvement.
Total greenhouse gas emissions and emissions per FTE decreased from 2010/11 due to ongoing efficiency measures.
bankmecu developed a supply chain management system. The bank’s Procurement Policy and Procedure was revised to include specific sustainability criteria when engaging new suppliers.
bankmecu grew its assets by 8.07 per cent during 2011/12, mainly from strong growth in deposits.
bankmecu exceeded its asset growth target and generated $27.02 million in net profit after tax being a return on equity of 9.08 per cent.
Customer owned capital increased to $311.6 million, or $2,406.14 per customer-owner.
Capital reserves belong to all customers. They underwrite the business and are reinvested into the business for the benefit of all customers.
bankmecu’s capital adequacy ratio remained strong at 18.5 per cent as at June 30, 2012 and well above the prudential minimum of 8 per cent.
bankmecu’s annual tax contribution towards Government activity and citizen wellbeing was $12.37m.
