Bank of us Reports a Decrease in Profit Amidst Rising Funding Costs
Tasmania’s very own, Bank of us, recently reported a dip in its profits for the fiscal year ending June 2025. The bank’s net profit fell from $7.0 million in FY2024 to a lower $5.9 million this year, as reported here. This decline is attributed to a reduced net interest margin which, according to the bank, is a result of elevated funding costs.
Factors Behind the Decline in Profit
According to Paul Ranson, the CEO of Bank of us, the net interest margin fell by over 5 basis points. This decline is particularly due to the timing of recent interest rate cuts. However, it’s worth noting that interest rate cuts weren’t the only contributing factor.
Increased spending on senior staff, including the appointment of several key executives, also played a significant role in this year’s profit decline. The bank also saw a surge in the use of costly wholesale funding. These factors combined led to the reported decrease in the net profit for the year.
Positive Outcomes Amidst Profit Decline
Despite the decline in profit, the Bank of us still witnessed positive strides in other areas. The bank’s total assets saw an impressive increase of 16.4%, bringing the total to $2.02 billion. This growth, even amidst financial challenges, showcases the bank’s resilience and strategic financial management.
Moreover, the bank’s market share in owner-occupied home lending by dollar value in Tasmania also saw a significant increase from 11.9% in 2024 to 13.5% this year. This growth is a testament to the bank’s commitment to supporting homeownership, a key aspect of economic stability for many families.
Contributions to the MyHome Shared Equity Program
Bank of us is accredited by the Tasmanian Government to provide lending services under the MyHome Shared Equity Program. Over the past year, this program contributed a significant $135 million of loan approval. This figure is a considerable increase from the $99 million recorded in 2024, demonstrating a commitment to community development and housing accessibility.
Bank of us Moves Headquarters
In addition to these financial changes, the bank also embarked on a physical move in July 2025. The bank shifted its head office to new premises located in Launceston. While the impact of this move on the bank’s operations is yet to be determined, it is an important milestone in the bank’s history.
In conclusion, while the Bank of us faced certain financial challenges that resulted in a decrease in net profit for FY2025, the bank also made significant strides in asset growth, market share, and community investment. As the bank adapts to these changes and continues its commitment to the Tasmanian community, the future looks promising.
