Graeme Willis - January 2015
I’m pleased to report that Victoria Teachers Mutual Bank enters the 2015 calendar year with a number of positive developments that position us well for the strategic challenges the financial services industry faces.
In 2014 a number of independent and external firms released reports on the financial services industry, which detailed:
Roy Morgan Customer Satisfaction Awards rated Victoria Teachers Mutual Bank as ‘Bank of the Year’.
Moody’s Credit Rating Agency upgraded the long-term issuer rating of Victoria Teachers Mutual Bank to A3 from Baa1, commenting on the excellent asset quality metrics and improved bank capital position.
KPMG issued a report entitled ‘Mutual Industry Review 2014' which highlights Victoria Teachers Mutual Bank as one of the most cost efficient banks in the sector.
CANSTAR, an organisation that maintains a database of product pricing across the deposits, lending and fees for the financial services sector, including the major banks and the mutual sector. The results highlight that Victoria Teachers Mutual Bank continues to deliver an equitable return to Members and compared to the major banks our Members are $850 on average better off banking with us over a rolling five year period.
In summary, what these reports highlight is that Victoria Teachers Mutual Bank has maintained its focus on customer service, strengthened its financial position, continued to improve its cost effectiveness and provide strong benefits to Members by way of very competitive pricing on deposits, lending and fees. These are all key strengths that position the Mutual Bank well for the challenges ahead and reflect the strength and skill of management to operate in challenging times.
2014 saw the establishment of the Financial System Inquiry and at the time of writing this column the final report had just been released. The recommendations from the report will have strategic implications for the industry and we will update you once the report has been fully assessed. In the meantime I can confirm that your Board continues to devote its time and effort to strategic issues and setting risk appetite for the sustainable benefit of our Members.