Non-major delivers solid results amid M&A surge
Bank Australia delivered a solid performance in the 2025 financial year, reporting a 37% lift in net profit after tax to $36.8 million and a 5.1% increase in total assets to $12.3 billion.
Home lending at the customer-owned bank lifted by a respectable 6.5%.
It is the first set of financial results published by Bank Australia since officially merging with Qudos Bank in July to create one of the largest banking mutuals in the country comprising some 300,000 members.
Bank Australia managing director Damien Walsh (pictured) called the merger “one of our biggest achievements of the year”.
Walsh also highlighted Bank Australia’s impact finance portfolio, which grew to $2.8 billion in assets, representing nearly 23% of the bank’s entire portfolio.
“An example of our impact lending focus is increasing our nature-related loans for conservation projects and to First Nations Traditional Owner Groups to buy back Country,” said Walsh.
“We contributed $1.5 million to our impact fund which goes towards projects, partnerships and programs that support people and the planet, including managing our conservation reserve in Western Victoria.”
Bank Australia also participated in the Victorian Homebuyer Fund, which helps low and middle income earners access affordable homes.
The group is now looking towards November 2025, when its acquisition of Australian Unity Bank is expected to complete.
The addition of Australian Unity will add approximately 25,000 customers along with $1.4 billion in loans and credit, and $1.6 billion in deposits (per figures released in November 2024.
Read more: Mutual mergers: Bank Australia, Qudos Bank deal is just the beginning
Bank Australia to grow broker footprint
Discussing the bank’s plans going forward, Matthew Wood, Bank Australia’s national manager – broker suggested more aggregator panel appointments are on the agenda.
“Under Bank Australia Limited, which includes both Qudos Bank and Bank Australia brands, we're committed to continuing to grow our footprint within the broker market by increasing the aggregator panels associated with each brand,” said Wood.
“Brokers provide a significant opportunity and this channel continues to be an important one for our business,” he added.
Both brands offer distinct advantages for brokers and their clients, with the Bank Australia brand continuing to provide access to brokers for government scheme loans, while Qudos Bank is expected to keep offering its variable No Frills Home Loan (which is currently priced at 5.19%).
Bank Australia sought to simplify the origination process through an overhaul of its loan writing platform in October 2024.
“Since launching this platform, service levels have remained consistent with brokers noticing the improvement in our service offering,” said Wood.
