- Auswide Bank (ABA) soared today after releasing some solid financial figures for the first quarter of the 2021 financial year
- The company tabled a quarterly net profit after tax of $5.56 million, which is over 36 per cent higher than the same time period last year
- On top of this, the company’s interest revenue was 12 per cent higher compared to last year, and it’s loan book grew over 7 per cent to $3.4 million
- Auswide said while it continued to provide coronavirus help to customers over the September quarter, its COVID-19 loan assistance fell to 3.3 per cent
- For reference, COVID-19 loan assistance was almost 9 per cent at the end of June
- Shares in Auswide tacked on over 5 per cent today to close worth $5.24 each
Auswide Bank (ABA) soared today after releasing some solid financial figures for the first quarter of the 2021 financial year.
The company’s quarterly net profit after tax (NPAT) came in at $5.56 million, which is a neat 36.22 per cent increase on the same time period last year.
Auswide said the improved profit is the result of strong loan book growth, tighter cost of funds, a 10-basis-point (bps) improvement in its net interest margin, and some strong expense management.
Along with the net profit growth, Auswide’s interest revenue grew over 12 per cent to $18.7 million, while its loan book grew 7.24 per cent to $3.4 million compared to last year’s $3.2 million.
And, of course, this growth came despite ongoing COVID-19 challenges being faced across the financials sector. It’s important to note that the above figures are all unaudited.
Auswide Managing Director Martin Barrett said the company has made an “excellent” start to the 2021 financial year.
“We continue to make strong progress delivering on our strategic plan and improving the capability of the bank,” Martin said.
As far as the coronavirus is concerned, Auswide said it continued to provide COVID-19 assistance to customers over the September quarter, but COVID-19 loan assistance fell to 3.3 per cent compared to almost 9 per cent at the end of the 2020 financial year.
Looking ahead, Auswide admitted there is still “considerable uncertainty” around the pandemic. The bank was tight-lipped about its 2021 financial year outlook but said it plans to update shareholders on its strategic progress at its upcoming Annual General Meeting, slated for November 17.
Nevertheless, investors liked today’s announcement; Auswide Bank shares tacked on 5.22 per cent today to close worth $5.24 each — their highest point since September 1. Auswide as a $223 million market cap.