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Published on: 3/1/2007
Last Visited: 3/3/2007
HBOS Australia Chief Executive David Willis said it was encouraging that the strong result had been achieved while the organisation had invested heavily in current and future growth initiatives.
"Since the Australian operations were first combined in 2003 the organisation has made consistent progress," Mr Willis said.
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Mr Willis said intense focus on investment for the future had increased operating expenses by 13 per cent (25 per cent in 2005), which was primarily a result of investment in distribution, people, improved internal processes, IT infrastructure, new product delivery and regulatory compliance, especially in the second half of the year.
"Accelerated investment in 2007 is planned for growth and will impact on costs and profit growth in 2007," he said.
"During the past three years this investment has provided strong revenue growth, with net operating income up 20 per cent in the 12 months, largely as a result of market share gains and a subsequent 32 per cent increase in lending.In addition deposits grew by 35 per cent."
Mr Willis said that the organisation's commitment to increasing competition in the financial services sector, by offering customers a better deal through market leading products and service, had continued to attract thousands of new customers.
This increased competition had tightened pricing on many products and services, but the organisation had been able to hold its margins at 2.33 per cent (2.39 per cent in 2005.)
Although a large part of the organisation's national expansion was focused on the east coast, the importance of the West Australian market remained a key part of the HBOSA strategy.
"The announcement during the year of a new purpose-built head office for BankWest recognises the importance of Australia's fastest growing State to the organisation's long-term plans," Mr Willis said.