Strong, Sustainable and Balanced Performance
The Mutual Bank was founded in 1888 in Maitland, regional NSW, by a group of passionate locals with a very clear mission: to keep financial investment local and support regional prosperity. Today, we have a clear vision to be the bank of choice for the Hunter and regional communities. We exist to champion financial wellbeing for our Members and regional communities, helping people thrive.
The customer-owned banking model matters because, unlike shareholder-owned banks that focus on maximising returns for investors, customer-owned banks like The Mutual Bank reinvest earnings into better rates, lower fees and improved services for their Members who are also the owners. This model fosters greater trust, financial inclusion and long-term community investment; and as a result, makes banking more responsive to local needs.
A Year of Strong, Sustainable Growth and Balanced Performance
The Mutual Bank’s CEO Mark Williams said that the bank has had a successful 2025 financial year, characterised by strong and sustainable growth and balanced performance across its key financial metrics.
“Given the difficult economic environment our Members have faced with cost of living pressures, The Mutual Bank has strived to strike the right balance between competitive interest rates, ensuring the ongoing financial strength of the organisation and investing in the business for the benefit of current and future Members”.
“The Mutual Bank is financially strong, well capitalised and committed to ensuring that our Members banking needs are met.”
Key financial highlights for the 2025 year included:
7.3% growth in total assets to $1.2 billion;
robust growth in the total loan portfolio of 9.5%, compared to total credit growth across the financial services industry of 6.8%, meaning that The Mutual Bank grew at a multiple of 1.4 times the growth experienced by the broader financial services sector;
pleasing growth in total deposits of 7.3%, in line with total deposit growth across the financial services industry;
a profit of $2.8m (an increase of 16.8% compared to the year ended 30 June 2024). The Mutual Bank’s profit level resulted in the capital adequacy ratio being maintained at 16.4% and its growth objectives being achieved, while simultaneously making substantial investments into a range of business initiatives to benefit both current and future Members;
maintaining a strong net interest margin of 2.50%, compared to 2.41% for the previous year; maintaining a strong provision for expected credit losses at 0.10% of the total loan portfolio given the uncertainty of the future operating environment, despite continuing strong credit quality and arrears experience;
successfully completing the second Medium-Term Note issuance, raising $32 million in funding through one and three year Floating Rate Notes, which diversifies funding sources and lengthens the overall maturity profile of funding; and
the bank’s external credit rating outlook improving from stable to positive reflecting The Mutual Bank’s strategic clarity and strong governance.
A Year of Strong Investment in Improving Our Services to Members and Supporting our Communities
The Mutual Bank’s Strategic Plan remains firmly centred on continuing to provide high quality banking services to its Members.
For the third year running, The Mutual Bank’s Budget Home Loan won a Mozo Expert’s Choice Home Loan Award in the coveted Low-Cost Home Loan category in recognition of the consistent value that our lending products provide.
The Mutual Bank is also proud of its service to Members, with the Net Promoter Score being measured twice during the year, and scoring an average of 61, which is significantly higher than the scores of the major banks.
During the 2025 financial year, The Mutual Bank focused on enhancing our proposition to Members, Team Members and the community by making significant investments, including:
refurbishing our East Maitland branch to provide a contemporary banking experience for our Members and a functional work environment for our Team Members. Unlike the major banks, The Mutual Bank continues to recognise the importance of its branch network in its distribution strategy, supporting regional communities and is consistent with delivering our Members choice in how they continue to bank with us;
in our digital capabilities, including further significant capability enhancements to our Digital Lending Channel (including integrations with key third-party providers, the streamlining of loan documentation and the digital delivery of loan documents to Members), upgrades to Internet Banking, the website and The Mutual App;
delivering a bold and future-focused data transformation program that will progressively transform how we manage and use information. By modernising our data infrastructure, we aim to unlock real-time insights that will support faster and decision making;
continuing to strengthen our information and cyber security capabilities given the ever-evolving threat environment;
successfully implementing the requirements of a new APRA Prudential Standard – CPS 230 Operational Risk Management that will materially strengthen the resilience of the ability of an ADI to manage their operational risks, ensure the continuity of critical operations and manage third-party service providers who support these critical operations; and
contributing over $170,000 to local community, sporting and cultural initiatives and social causes.
A Year of Supporting and Developing our People
Our Team Members make a meaningful difference at The Mutual Bank through their passion, dedication and commitment to our values of Integrity, Respect and Care.We recognise that our People are our greatest asset and that without great people, we cannot succeed. We remain committed to supporting our people with flexible work arrangements, career and development pathways, employee benefits, wellbeing initiatives, and facilitating collaboration and communication forums.
Looking To The Future
Our Members will remain at the centre of our Strategic Plan with all organisational decisions and efforts focused on achieving our vision of becoming the bank of choice for the Hunter and regional communities.
We remain committed to our Channel of Choice Strategy, maintaining financial strength and robust risk management and resilience and supporting our local communities.The Mutual Bank is financially strong, well capitalised and committed to balancing short-term financial performance with long-term sustainability to ensure that our Members banking needs are met.
We sincerely thank our Members for their unwavering loyalty and support, and all Team Members of The Mutual Bank team who provide exceptional service and continue to strive for excellence to ensure that we continue to meet the banking needs of our Members.
View the full Annual Report online here.
