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Australia’s leading mutual bank, Heritage and People’s Choice, has delivered an outstanding financial performance for the financial year ending 30 June 2023, making a strong start on its mission to become an iconic purpose-driven alternative to the major banks. 

CEO Peter Lock said the newly combined organisation had achieved excellent results and avoided the potential disruptions that the merger process could have posed. Heritage and People’s Choice was formed on 1 March 2023 through the merger of Heritage Bank and People’s Choice. 

Mr Lock said the way the new organisation had come together was very pleasing. “We’re at the early stages of our merger but our achievements to this point have met all of our expectations” he said.

“We’ve not only grown our membership, lending, deposits and assets, we’ve also maintained high levels of customer satisfaction, built a strong values-based employee culture and
delivered a solid profit despite the costs of integration.

“At the same time, we’ve also started delivering the member benefits that we committed to in the lead-up to the merger.  

“That is quite incredible and speaks to the appeal that a financial institution built on purpose and values has in the Australian banking sector.

“These results prove that a bank driven by purpose, not profit, can be just as competitive and strong, while maintaining a focus on the customer.” 

Highlights of the 2022/23 financial results include:

  • Net profit after tax of $32.1 million.1
  • Total loans and advances of $19.1 billion, up 5% from a combined $18.2 billion.2
  • Growth in the residential lending portfolio to $18.3 billion, an increase of 5.2%.2
  • Retail deposits of $17.8 billion, a 3.5% lift. 2
  • Total assets of $23.3 billion, a 2.6% increase on the combined balances of Heritage Bank and People’s Choice at 30 June 2022. 2
  • Net promoter score (a measure of members’ trust and loyalty) of +37 at 30 June 2023, significantly higher than the major banks’ market average of +9.
  • Net member growth of 26,774 in the 12 months to 30 June 2023.
  • A capital ratio of 14.50% and a liquidity ratio of 16.27% at 30 June 2023, both comfortably above prudential minimum requirements and an indicator of financial strength.
  • Total community support of $11.08 million over the financial year, generated through the People’s Choice Community Lottery, Heritage Bank Charitable Foundation, donations, sponsorships, scholarships, employee volunteering, workplace giving and Community Branches.

The profit result was achieved despite an additional $24.4 million of expenses incurred during the first year of the merger and integration process.

Mr Lock said the organisation was on track to announce a single new brand in the coming months.

“Our aspiration is to become Australia’s iconic purpose-driven financial institution that delivers positive change through banking,” Mr Lock said.

“Announcing a new name and brand will be a major step forward in that process. 

“Our 2022/23 results show we can confidently move ahead to create something truly special in the Australian banking sector.

“We will continue to drive our multi-year integration plan to form one organisation and further realise the benefits of the merger. We will invest in creating a simpler, modern IT platform while providing even higher levels of reliability and security. 

“And we will work to every day to retain that member focus that has underpinned our success for almost 150 years.

“We have an exciting year ahead, with the opportunity to reset the banking landscape in Australia as a purpose-driven, national customer-owned bank that delivers real value for members, employees, communities and the environment.”

Profit after tax for the first eight months of the 2023 financial year is attributable to the operations of People’s Choice Credit Union on a standalone basis. As a result of the merger on 1 March 2023 the profit after tax for the final four months of the 2023 financial year includes profit earned in relation to the operations of Heritage and People’s Choice. The profit of Heritage Bank Limited earned over the first eight months of the 2023 financial year is reflected in the contributed equity balance at the effective merger date. For further information please refer to note 34 within the financial accounts.

2 The growth reported compares Heritage and People’s Choice as at 30 June 2023 with the combined positions of Heritage Bank Limited and People’s Choice Credit Union as at 30 June 2022.


Media Enquiries

Andrew Fox
0419 714 204 | heritage.news@heritage.com.au 

Jonathan Revitt 
0412 639 179 | jrevitt@peopleschoicecu.com.au 

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