Net profit jumps nearly 50% as bank supports thousands of borrowers
Teachers Mutual Bank has reported a significant increase in annual profit, with net profit after tax rising by 49.8% to $36.7 million for the 2025 financial year, partly due to strong growth in its lending portfolio.
Home loan approvals reached $1.5 billion over the year, supporting more than 3,700 members in purchasing or refinancing properties. Among these, 960 were first-home buyers. As at June 30, over a quarter of the bank’s home loan customers were more than a year ahead on their repayments, reflecting a strong repayment culture among members.
Meanwhile, retail deposit balances increased to $9.2 billion, while the capital adequacy ratio improved to 17.01%. The net interest margin also rose to 1.86%.
“Being member-owned, our profits are reinvested back into the bank for the benefit of our members and the communities they support,” said Anthony Hughes (pictured above), chief executive of Teachers Mutual Bank.
“In a high cost of living environment, this year we have offered competitive products and rates, while remaining focused on making our banking experience simpler and safer and ensuring the long-term sustainability of our bank.
“Our strong results and capital position support our continued investment into important transformation programs, and our proposed merger with Australian Mutual Bank.”
The merger plan, announced in December 2024, would create an institution with combined assets of $13.4 billion. The bank expects to present the merger proposal to members for a vote in 2026. “Merging two trusted and financially sound banks will create a stronger, future-ready bank that can deliver greater benefits to members while helping ensure our bank’s sustainability well into the future,” Hughes said. “We’re well progressed in the application process and are expecting to bring the merger proposal to a member vote in 2026.”
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