Australia

Details

  • Industry: Financial Services, Banking
  • Type: Survey report
  • Date: 22/11/2011

Building Societies and Credit Unions (Mutuals) Survey

Building Societies and Credit Unions Survey
KPMG's annual Financial Institutions’ Performance Survey includes coverage of building societies and credit unions.

Financial Institutions Performance Survey

Financial Institutions Performance Survey
KPMG's survey of financial institutions offers a detailed, authoritative review of performance and trends across key sectors of banking and finance.

Building Societies and Credit Unions Survey 2011 

Australia’s credit unions and building societies recorded another year of strong performance despite increased pressure from the majors, according to KPMG’s Building Societies and Credit Unions: 2011 Financial Institutions Performance Survey.
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Credit unions and building societies have experienced continued competition from the major banks and regional banks in 2011. Despite this, credit unions increased profit after tax by 18 percent while building societies' profit after tax fell by 5.1 percent. They also recorded strong growth in assets and deposits.

 

Key insights

  • Greater market awareness of the alternative provided by the mutuals has seen the sector hold its place in the market with building societies (5.5 percent) and credit unions (8.0 percent) showing increases in total assets.
  • Consumer preference for saving, rather than borrowing, fuelled deposit growth for building societies (7.9 percent) and credit unions (8.0 percent).
  • Capital remains robust with average capital adequacy ratios for building societies (15.4 percent) and credit unions (18.0 percent).
  • Impairment losses continue to be remarkably low with total provisions to gross receivables at 0.06 percent for building societies and 0.10 percent for credit unions.
  • Some mutuals have announced an intention to change their name to take advantage of the title 'mutual bank’.
  • A major challenge for the mutuals is where to find growth in a subdued market.


 

 

Banking

KPMG’s banking practice in Australia is well placed to help clients successfully navigate challenging times and capitalise on opportunities.