Media Release

BankSA has delivered a solid performance with core earnings* up 2% to $368 million, and cash earnings# up 5% to $248 million for the 12 months to 30 September 2014. The result was aided by a significant reduction in impairments.

Key results compared to the prior year:

• Total revenue up 2% to $577 million, from $567 million.
• Core earnings up 2% to $368 million, from $361 million.
• Cash earnings up 5% to $248 million, from $236 million.
• Operating expenses were up 1% to $209 million, from $206 million.
• Total lending increased by 3% to $20 billion.
• Commercial lending was down 2% to $6 billion.
• Home lending increased by 4% to $13 billion.
• Deposits grew by 5% to $12 billion.

BankSA Chief Executive Nick Reade said the bank had delivered a solid performance, with growth in home lending, personal lending and deposits, while embarking on a significant change agenda for the business.

“Our unique understanding of the South Australian market, reinforced by our local management and local decision making, enables us to create closer relationships with customers, leading to faster and better decisions,” Mr Reade said.

“We’re pleased to have realised growth in the key markets of small to medium business lending, despite the South Australian market remaining challenging.

“With BankSA’s latest State Monitor survey reporting small increases to both business and consumer confidence, we hope to see overall corporate and property investment increase in line with sentiment.”

Mr Reade said the bank had also made a strong start to the new financial year, after unveiling a new brand identity last month, signalling the broader transformation agenda underway.

“BankSA is at the beginning of a significant program of transformation and we are really excited to be planning and implementing a range of initiatives that will position us well for growth moving forward,” Mr Reade said.

“We’re building a bank for the future and we’ll be undertaking this on a number of fronts.”

Improving the retail experience for customers is a key focus with $9 million already invested into 17 branch refurbishments, and two brand new branches opened.

“Another $12 million will be invested over the coming year to bring the total number of refurbished branches in our network – the largest in South Australia -to 45,” said Mr Reade.

A range of innovations were also introduced for BankSA’s growing customer base attracted by the convenience and efficiency of high-tech solutions.

These included:

• Business Connect video technology to 20 Adelaide branches, enabling small business customers to seek specialist advice from a King William Street based team of subject matter experts; and
• Biometric technology in mobile banking, which allows customers to securely logon to mobile banking on their iPhone by using the fingerprint sensor, known as Touch ID.

“With nine in ten of BankSA’s transactions taking place online or on a mobile device, it’s critical that we continue to innovate in this area,” said Mr Reade.

“Our competitive offering in the marketplace and investment back into the business this year in the form of branch improvements, technology innovation and customer service initiatives, has positioned us well,” said Mr Reade “but we are just getting started on a multi-year transformation agenda.”