25-Mar-2020 • Corporate

ME today announced its financial results for the six months ending 31 December 2019 with statutory net profit after tax (Statutory NPAT) of $52.0 million, up 26.3 per cent, and underlying NPAT of $58.6 million, up 6.6 per cent compared to the previous corresponding period (pcp).

Half year to 31 December 1H20 1H19 Change
Underlying NPAT $58.6m $55.0m 6.6%
Statutory NPAT $52.0m $41.2m 26.3%
Net interest income $213.2m $204.1m 4.5%
Operating expenses $159.7m $157.1m 1.7%
As at 31 December:      
Home loan portfolio $26.7b $25.3b 5.5%
Customer deposits $16.4b $15.6b 5.3%
Total assets $30.2b $28.6b 5.6%
Key metrics:      
Net interest margin 1.59% 1.59% Steady
Underlying cost-to-income ratio 61.1% 61.3% (20 bps)
Underlying return on equity 8.5% 8.1% 40 bps
Common Equity Tier 1 9.79% 9.54% 25 bps


ME’s Chief Executive Officer Jamie McPhee commented, “ME’s strong financial results for the half demonstrate the success of our customer-led strategy, reflecting our primacy in customer satisfaction1 and our focus on delivering simple, transparent and competitive products and services.

“Our brand and marketing activities have hit home, especially our 2019 ‘Bank-xiety’ campaign, resulting in a continued increase in customer numbers. Our trusted brand is resonating with customers.”

Reflecting on ME’s customer focus and attraction of new customers, results for the half saw a 6.6 per cent uplift in underlying net profit after tax, to $58.6 million. Net interest income increased by 4.5 per cent to $213.2 million and above-system growth of 1.2 times was achieved in both home loans and deposits. These results were achieved in an environment of increased competition, low growth and subdued consumer confidence.

Mr McPhee commented, “The growth in our deposit portfolio has enabled us to better manage our balance sheet and funding costs. This, together with careful cost management, have contributed to improved profitability.”

Business highlights

  • Home loans increased by 5.5 per cent to $26.7 billion.
  • Customer deposits grew by 5.3 per cent to $16.4 billion.
  • Both home loans and deposits grew at above system for the half (1.2 times).
  • Customer numbers increased by 7.6 per cent to 532,851 with an increase mainly in customers who view ME as their main financial institution.
  • Launched a new Everyday Transaction Account / Online Savings Account bundle.
  • Achieved targeted net stable funding ratio of 110 per cent during the half.
  • Commenced a cost-optimisation program.
  • Maintaining a strong capital position with Common Equity Tier 1 capital ratio of 9.79 per cent, up 25 basis points compared to the pcp, and 31 bps from 9.48 per cent in FY19.

Mr McPhee concluded, “We have achieved widespread recognition and awards for our products and services and are one of Australia’s most trusted banks. Roy Morgan’s latest banking research, released in January this year, revealed ME had the highest satisfaction rating of 91.4 per cent amongst the 50,000 Australian home loan customers surveyed. ME’s proprietary research, undertaken from November 2019 to January 2020, showed it is the second most trusted bank in the market.

“We will continue our focus of supporting our customers and on delivering simple, transparent and competitive products and services.”


[1] Roy Morgan Single Source Australia, July 2019 – December 2019, 29 January 2020

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