Baywide profits up by 40pc in difficult times

Chief executive Gavin Earle announced a $1.7m operating surplus, from $1.2m for the previous year. Photo / HBT

Hawke's Bay-based credit union NZCU Baywide has reported a 41 per cent rise in profits for the year ended June 30.

Chief executive Gavin Earle announced a $1.7 million operating surplus, from $1.2 million for the previous year, while assets increased by 10 per cent or $23 million - to $252 million.

Chairman Iain Taylor said the result was despite the "challenging" operating environment.

"Our predominantly provincial regions continue to battle hard economically without the drivers of growth that the larger cities possess," he said.

During the year the Dannevirke, Wairoa and Palmerston North branches moved to larger, higher-profile locations and in March 2000 new members joined due to the merger with Credit Union Bay Health.

Baywide merged with Manchester Unity Credit Union in 2012 and Wine Country Credit Union in 2011.

"There are numerous challenges facing smaller credit unions, not only in terms of fierce competition, but also costly compliance and regulatory obligations imposed on all financial institutions. By combining forces, we generate improved efficiency and scale to absorb these costs," Mr Earle said.

He said the operating surplus reflected "loyalty and support" from a "highly satisfied member base" thanks to banking services such as a mobile banking app for smart phones or tablets.

"Our new app not only keeps us at the forefront of convenient high-tech product offerings, but also compliments our wide range of options for members."

"It is important that credit unions continue to innovate to remain competitive."

Results

• $1.7 million operating surplus

• Total assets increased by $23 million to $252 million

• Member deposits increased by $21 million to $214 million

• Loans grew by $33 million to $195 million

• Expansion of the Wairoa, Palmerston North and Dannevirke branches.