First-home buyers supercharge mutual bank’s first-half results
Customer-owned bank Great Southern Bank saw a 4.2% year-on-year increase in home lending in the six months to 31 December 2025.
Total volumes came to $18.2 billion, supercharged by more first-home buyers entering the market.
During the period, the government’s expansion of the 5% Deposit Guarantee came into force, swinging the doors open for homeownership doors open for more first-home buyers.
“Owning your own home remains at the heart of many Australians, and we’re pleased to support them on their journey with increased lending,’ said GSB chief executive Paul Lewis.
“We’ve grown faster than the market, and increased our lending in every state and territory, particularly in places like South Australia, Tasmania and the Northern Territory that are outside our traditional markets,” he added.
This strong lending growth, alongside lower wholesale funding costs and a desirable funding mix, sent net profit after tax (NPAT) up 57% sequentially to $27 million.
During the period, GSB surpassed the Australian Prudential Regulation Authority (APRA)’s $20 billion Significant Financial Institution (SFI) balance sheet threshold.
“The SFI milestone demonstrates the Bank’s strong capital position and risk maturity, while reflecting its increasing scale and importance within Australia’s banking system,” said the group.
Lewis added: “Reaching the SFI milestone largely through organic growth is a significant moment in our journey and a clear signal of our long-term strength as a bank.”
Lewis also drew attention to GSB’s various partnerships, including its finance collaboration with MYOB and its work with Mission Australia, “which are enabling us to innovate while delivering meaningful impact”.
“We remain well capitalised, with a strong balance sheet and a continued focus on responsible lending, positive customer outcomes and sustainable growth, underpinned by ongoing technology improvements and deep customer trust,” he said.
The results follow GSB scrapping merger talks with P&N Bank in January, after the board determined that “progressing the merger would not be in the best interests of its members”.
The scrapped talks are not expected to impact customers, employees or day-to-day operations.
