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First Half Year Results Announcement

21 January 2020

First Half Year Results Announcement

While many of the mutual and neo banks are driving their marketing with the flavor of innovation Australian Military Bank has substantiated its bottom line value with strong first half results.  The niche mutual bank is exceeding its NPAT budget (125%) and is growing its loan portfolio at two times system growth* despite margin pressures in an ultra-low rate market.

According to Australian Military Bank’s CEO, John Ford, “we think there are a lot of positives out there for small niche banks with efficient business models, technology has never been more affordable and the Federal Government’s pro-competition policies are proving meaningful for smaller players”.

According to Ford “Our strong first half results are a result of above system loan growth, effective margin management and strong cost controls.  Our year on year non-interest expense has reduced by – 4% attributed to our digital transformation strategy.

Our transformation to cloud based computing is paying many dividends for us as our organic growth continues unhindered by branch rationalization, in fact our net membership growth is around 5% originated through digital channels utilizing straight through processing.”

Ford believes that while the major banks may have been heavily distracted since the Hayne Royal Commission new legislation and schemes will prove beneficial to AMB and its membership, “the introduction of comprehensive credit reporting data has been most helpful for our responsible lending. We see CCR as a forerunner to Open Banking which we expect to be even more beneficial to members, prospective members and the Bank.   Similarly, the First Home Buyer Deposit Scheme will help young people into the housing market that might not otherwise be able to do so”.

Perhaps the most important legislative change for mutual banks, according to Ford, has been the Treasury Law Amendment (Mutual Reforms) Bill 2019. “We, along with other Mutuals, have the potential to grow more quickly but are hamstrung by access to capital. The introduction of a friendly ‘Mutual Capital Instrument’ will help the Bank in time to raise additional capital to underpin our growth”.

John Ford will step down as CEO of Australian Military Bank at the end of February after 7 years of service. “It’s been a privilege to serve as CEO during a period of substantial transformation and I look forward to the Bank’s ongoing success”. Darlene Mattiske-Wood will commence as the new CEO from 2 March 2020.

Key Results Summary – YTD December 2019

Total assets: $1.425 m

Loan growth: 1.96 x System*

Expense growth (YoY): -4.0%

NIM: 2.09%

Net Member growth (annualized) 4.8%

*Source: APRA November YTD


Australian Military Bank is a member-owned Mutual bank that has been helping Australian Defence personnel and their families make the most of their money since 1959. As Australia’s longest serving Defence financial institution, AMB specialises in service and products that integrate into the unique aspects of life in the armed services.

As a mutual organisation, Australian Military Bank is run for the benefit of members who are also our shareholders. Australian Military Bank;


  • 1959: Founded as the Navy (Civil Staff) Co-op. Ltd.
  • 1971: Membership extended to civilian employees of the Army and RAAF in NSW
  • 1983: We merge with Army Defence (NSW) Credit Union and rebrand as Australian Defence Credit Union (ADCU)
  • 2008: Selected by Department of  Defence as one of three DHOAS home loan providers
  • 2014: Achieve in excess of $1 billion funds under management
  • 2015: Membership exceeds 50,000 and vote passed to change our name to Australian Military Bank
  • 2018: Launch of new Core and Digital Banking offerings 24/7
  • 2020: 56,000 members, 4 million+ logins 

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