CUA grows profit and gives back to members
16 October 2007
CUA (Credit Union Australia) increased its profitability by 25 percent over the 2006/07 financial year with members receiving $7 million worth of savings through changes to interest rates and fee structures.
Recording a net profit of more than $48 million and increasing assets under management to $6.6 billion, CUA is ideally positioned to continue delivering benefits to its members.
CUA Managing Director Graham Olrich said the early part of the year was dominated by merger integration activities but the organisation continued to answer member needs with its new branch openings and relocations.
“We made many changes to the internal structure as a result of the merger but our focus remained on growing the business with more than $1.8 billion worth of loans settled during the financial year,” he said.
“Three new branches were opened and we relocated eight others to ensure CUA remains accessible to its members.
“We also introduced two new products - a three year introductory rate variable home loan and a competitive low rate MasterCard that have been embraced by members.”
Mr Olrich said he believed member numbers would continue to grow over the next financial year as the finance industry tackled the changing market conditions and investors assessed their options.
“Credit unions do not fit under the category of non-bank lenders and while every institution is tackling the changes I believe there will be a ‘flight to quality’ by consumers and we are ready to service them,” he said.
“I do not believe the market cycle is going to affect credit unions too greatly. In fact I think this gives us a chance to snatch some market share back. We plan to be out there ready with the right products to take advantage of the churn.”
Mr Olrich said one of the ongoing roles of CUA was to champion the benefits of credit unions.
“The major benefit and message we want to push is that members are our owners and as such we need to, and will continue to, reinvest in the business those profits that would otherwise go to shareholders of publicly listed companies.
“This year we reviewed member fees and are proud to say that over 80 percent of our members operated their accounts fee-free.”
CUA operates 74 branches throughout Queensland, New South Wales, Victoria, Western Australia and the ACT servicing close to 400,000 members.
CUA was named “Best Credit Union 2007” in Money magazine’s Consumer Finance Awards.
