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From our CEO
In December our results demonstrated a healthy half yearly result reporting a net profit after tax of $10m.
We are pleased to report that from July to December, our deposits grew 10.8% to $3.34b, loans outstanding rose 10.3% to $3.53b. Some of our key achievements over this period include:
- Switching from a credit union to bank designation;
- Delivering an industry-leading website optimised for mobile platforms;
- Our ACT operations performed strongly, including a 6.5% leap in lending and a 2.8% rise in deposits;
- Our WA operations experienced lending growth of 3%;
- We saw an increase in deposits of 4.6% and 3.9% respectively in Wagga Wagga and South Australia;
- We successfully merged with Alliance One Credit Union;
- Launching a major community partnership with Volunteering Australia in September 2013 aimed at advancing the critical role which volunteers play in our community;
- Launched successful public appeals for the NSW and WA bush fires along with an appeal for victims of the devastating typhoon in The Philippines;
- In the Hunter Valley region, we saw a 2.9% growth in new lending; and
- Our overall new lending was up by 10.8% for the same period.
Our results align with a challenging economic environment and our commitment to reinvest profits for the benefit of our customer-owners and the communities in which we operate.
The one-off costs associated with the change in our name and designation, along with completing our merger with Alliance One, was recorded during the second half of 2013, however these initiatives underpin the long-term strength of our business.
New products include a Low Rate Credit Card with one of the lowest interest rates in the country, an Investment Loan for Self-Managed Super Funds and a revamp of our range of Car and Personal Loans, including a transactional account specifically designed to assist in budgeting for car expenses.
During this period we have also distributed close to $580,000 to communities across the nation and our newly established Community Development team works with charitable and not-for-profit groups in line with our commitment to strengthening communities. Special banking packages are offered to volunteers and staff of community groups to recognise the contribution they make to our daily lives.
The investments we have made in our organisation over the past six months were possible following a prolonged period of disciplined cost management. The benefits of this will contribute to our solid business performance, disciplined management and a strong commitment of our people throughout the financial year and beyond.
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PIN will replace signatures soon so make the switch now
From 1 August 2014, signatures will no longer be accepted for purchases made in person on all credit and debit cards issued in Australia and will require a PIN to complete the transaction.
Why use a PIN?
- It’s faster – You can get through the checkout faster with a PIN.
- It’s convenient - You can change your PIN at any rediATM, day or night, as long as you know the existing PIN on the card. You can also change it at any of our branches, as long as you have another form of identification handy.
- It’s safer - While signatures can be forged, your PIN is your secret - making it the more secure form of identification.
You can continue to use payWave for purchases on your Visa card under $100 - no need to PIN or sign, simply hold your card to the terminal and wait for the beep. If you don’t currently have a PIN on your Visa card, visit your nearest branch and we’ll help you set one up.
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Tax-effective savings through Novated Leasing
Novated leasing provides a most tax-effective way to drive the car of your choice.
Beyond Bank Australia has established an arrangement with FleetPartners to provide novated leasing solutions to customers.
How does a Novated Lease work?
All your vehicle running costs - fuel, registration, insurance, tyres and maintenance, along with the car finance cost, all rolled into a regular payment. Instead of paying for all this with take-home salary, a portion is paid by the employer from pre-tax salary - known as salary sacrifice.
How does a Novated Lease save me?
- SAVE on the car finance cost with fleet discounts;
- SAVE again with substantial GST savings on the purchase price of your new car;
- SAVE every day on GST by bundling up your fuel, maintenance, insurance and roadside assistance;
- SAVE even more by paying less income tax; and
- SAVE time and hassle with one easy regular payment and convenient servicing and maintenance.
Visit the Beyond Bank website and try the Novated Lease Calculator which includes over 400 makes and models available to quote on.
Standard lending criteria apply. Current 24/02/14
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Helping to understand the warning signs of financial abuse
The security of your money is our top priority, so it is important that we keep you aware of potential risks and inform you of the steps you can take to reduce your chances of becoming a victim. In this article, we talk about financial abuse.
Financial abuse can happen to anyone and occurs when someone else uses your money for their benefit, without your unconditional consent. The perpetrator of this abuse could be someone you have never met, a person on the other end of the phone, an Internet ‘friend’ who is actually looking to scam you, or even a friend or family member.
The forms of financial abuse are varied. Direct forms of abuse are unauthorised use of your Visa card, rediCARD or Internet banking, forging a signature on cheques, or taking cash directly from you. Indirect forms of abuse include coercion to buy items or services you don’t really want, forcing you to purchase things for them, or insisting you become a guarantor on a loan.
For these reasons, it is important that you remain aware of these potential warning signs and understand what you can do to reduce your risk.
- Always keep your chequebook, rediCARD or Visa card safe;
- Don’t share your PIN or passcodes with anyone else;
- Check your bank statements and immediately report any unauthorised transactions; and
- Cancel any unused chequebooks or any other services that you no longer use, such as Internet banking.
If you think you’re the victim of financial abuse or are being coerced by someone, it’s important to seek help, If you have any concerns you can call us on 13 25 85 or visit your local branch for further assistance.
Alternatively, you can make a report to the police or seek help from organisations such as the Australian Network for the Prevention of Elder Abuse, who can connect you with
someone in your state who can help.
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More rewarding home loans
For almost everyone, a home loan is a big financial investment. In fact, for most, it is the largest loan they will ever commit to.
But a home loan is more than just a financial commitment; it is also a huge emotional investment. Owning your own home – or even an investment property – can bring a whole spectrum of emotions, from excitement and elation to worry and stress.
At Beyond Bank, we’re not just a bank; we’re a 100% customer-owned financial institution, and we are dedicated to returning value to everyone who banks with us.
Because of our close relationship with our customers, we understand the commitment involved in taking out a home loan. And because we understand the commitment, we believe you deserve to be rewarded for choosing to have a home loan with us. As a result, we’ve developed a whole range of benefits for our customers who take out a home loan with us.
These rewards include discounted home loan interest rates for the life of the loan, no establishment, annual or monthly fees, and a range of benefits across our everyday banking products. We understand that your home loan doesn’t just affect you; it has an impact on your family as well. That’s why the establishment fee benefits you receive are also extended to your family.
Quite simply, these benefits are our way of saying ‘Thank you’ and for choosing us – the other way to bank.
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Choosing the right loan
When it comes to selecting the right home loan, many people are faced with the same problem – fixed, variable or both?
In an ideal world, there might be a ‘right’ answer, but these loan options exist for a reason. Depending on your particular financial situation, lifestyle and aims for your home loan, any one of these alternatives could be right for you.
So, though we can’t give you the magic solution, we can provide you with an explanation of each type, and why you might select one.
Fixed rate home loans
Quite simply, a fixed rate home loan offers certainty. When you take out one of these loans, the interest you pay on the loan is ‘fixed’ at a specific rate. Though this rate is higher than the market rate, it cannot change for a certain period, usually between one and five years. After this period has elapsed, you can usually apply for
a new fixed period.
The advantage of a fixed rate is that you know exactly what you have to pay, for an extended period of time. This allows you to plan your finances with confidence.
Variable rate home loans
Unlike a fixed rate loan, the interest rate on a variable loan fluctuates with the market. This means that when market interest rates are lower, so is your home loan interest. However, when market rates rise, so do your repayments.
Generally, variable home loans also offer more flexible repayment options, such as low basic variable rates and options for extra repayments.
Split fixed and variable home loans
Another available option is to split a loan, with one part of it lent at a fixed rate of interest, and the other variable. This provides a level of certainty, while allows access to
flexible features not available on fixed rates loans.
Making the right decision
When you take out a home loan, it’s important that you select the one that’s right for you. At Beyond Bank we offer a whole range of home loan options. We can discuss your individual requirements and find the one that fits you best. If you would like to discuss your choices, drop in to your nearest branch or call us.
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Faster, secure and greener loan processing
Caring for the environment is everyone’s responsibility. That’s why we’re committed to being as environmentally friendly as possible.
In 2013 we introduced our greener, faster and more convenient way for you to review and accept personal loan contracts – by doing it online.
Now in 2014 we have more great ‘green’ news. In the very near future, you will be able to use the same online process to accept loan contracts when increasing your existing mortgage loan with us.
This means you will be able to apply for a mortgage increase on-line, and receive and accept your loan contracts within the security of Internet banking.
This online process will enable you to receive and accept your loan documents quickly, securely, and in an environmentally friendly manner. Additionally, you’ll be able to receive your loan proceeds quicker!
If you would like more information about these developments, visit your local branch or give us a call.*
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Important Reminder for Borrowers
Do you have a home or investment loan with us secured by a mortgage over a residential property?
If so, we would like to remind borrowers that under the terms of the mortgage loan agreement, you are required to keep the mortgaged residential property adequately insured at all times. The amount of cover should be at least the current cost to completely rebuild your property including all structural improvements at the site, such as sheds, paving, in-ground swimming pool, etc.
Don’t be underinsured
Underinsurance comes about by nominating a sum insured that is too low to fully replace the building and other structural improvements in the event that they are destroyed. Should the worst happen and the underinsured home be totally destroyed, there will be no ability for insurance to rebuild the property. In 2005 the Australian Securities and Investments Commission (ASIC) estimated that 70% of Australian homes were underinsured.
Saving a few dollars on the cost of insurance by reducing your sum insured could end up being false economy – could you afford to make up the difference to rebuild your home if it was destroyed?
Most insurers have calculators available on their websites to help you work out how much cover you need, or you can visit our website and try our calculator. More information about property insurance is available from ASIC’s website at moneysmart.gov.au
Why not talk to us?
With our PremierCare® range of insurance1 we can arrange cover for your home or investment property as well as your contents and personal valuables.
Mention this reminder notice and we’ll give you 10% discount2 on the premium when you switch your insurance to us.
1. Beyond Bank Australia is a trading name of Community CPS Australia Ltd AFSL/Australian Credit Licence 237856 ABN 15 087 651 143. Beyond Bank Australia arranges this insurance for the insurer Allianz Australia Insurance Ltd (Allianz) ABN 15 000 122 850 AFSL 234708 and not as your agent. This is general information only. Before making a decision about this insurance please consider the relevant Product Disclosure Statement available by calling 13 25 85 and/or our website. PremierCare® is a registered trade mark of Community CPS. If you purchase this insurance we will receive commission from Allianz as a percentage of the premium.
2. Discount is not available in conjunction with any other offer and applies to new insurance only. Discount does not apply to Flood cover premium (if any). The minimum premium established by Allianz will apply.
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Clever tips for clever property investing
Investing in property doesn’t have to cause stress and worry, provided you have the right information and make the decision that works for you. To help you do just that, here are five things to consider before you buy an investment property.
- Using the equity in your home
Equity can be a smart way to secure finance when buying an investment property. If you own at least one-third of your home, or your home has increased in market value, you are in a good position to leverage the equity in it. You can do this by refinancing or redrawing your existing home loan to a greater value and using that to fund a deposit for an investment property.
- Choosing a loan
When investing, it’s important that you choose a loan that works best for your financial needs and your lifestyle. Fortunately, there are many options available for investors. These include variable and fixed rate loans, as well as features like loan redraw and mortgage offset accounts. You also have the option to combine the stability of a fixed rate of interest with the flexibility of a variable rate of interest. Our tax advisors can assist you to structure your loans to ensure you maximise the deductibility of interest related to the purchase of your investment property.
- Work out the costs involved
When looking for a loan, it’s important to remember the other costs involved in purchasing an investment property. These include stamp duty, Land Titles Office registration fees, loan mortgage insurance (if you are borrowing more than 80%), mortgage application fees and conveyancing fees. If you do invest, be sure to keep records of all expenditure to minimise your tax.
- Tax implications
You may have heard reference to ‘negative gearing’ in relation to investment properties. This refers to when the interest on the borrowing and other costs of maintaining the property exceed the rental income generated from it. You can use the loss you have incurred to reduce your taxable income. Though this can be advantageous, it’s important that the tax advantages of negative gearing are not the only deciding factor when investing. Residential investment properties have the potential to provide investment security, capital growth and rental income as well as tax advantages. It’s a complex area, but good tax advice can help you maximise your deductions, minimise your tax and bring forward the timing of any tax refund.
- Review your insurance
When taking on extra lending commitments, particularly if you are considering negative gearing, you should also review your income protection insurance. It can help you to pay your everyday living expenses (such as mortgage payments), other expenses (like car costs and electricity and gas bills) and premiums may be tax deductible.
When investing in property, make sure you have the right team of professionals supporting you. Your accountant, financial planner, solicitor and banker will be an important part of assisting you through the property investment journey.
This information above is intended as general information only and we advise all investors to seek specific advice relevant to their personal circumstances prior to making any investment decision.
If you’re thinking about purchasing an investment property, we’ll give you a free 30-minute phone consultation with one of our experienced accountants who can explain the tax consquences of property investment. To make an appointment, give us a call at Beyond Advice. We also have Mobile Relationship Managers available who can visit your home or office and advise how much you can borrow and the best loan for you. To make an appointment with a Mobile Relationship Manager please give us a call.
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Community Creating more good together
Hitting our straps with Riding for the Disabled
Riding for the Disabled has been operating in Wagga since 1975. Originally established by a small number of volunteers and servicing just six riders, the centre now provides riding programs and carriage driving for approximately 125 disabled clients.
With only three paid employees, the centre relies on their 100+ volunteers to help with the additional workload. Bev Amery, who has volunteered at the centre for 37 years, says that volunteers have always been central to the organisation’s success.
“Riding for the Disabled would not survive without our volunteers, and it’s not always easy to find them. However once someone has taken their first step to volunteer, we find they really enjoy it and continue helping in their community,” said Bev.
By partnering with us, Riding for the Disabled has found some much-needed support. In 2002, they registered as a Community Reward Account recipient organisation, and a decade on, they now have 161 Community Reward Accounts linked to their organisation and recently received an annual bonus payment of $13,562, bringing the total bonus payments received since 2002 to almost $98,000.
In 2012, we also provided them with a $30,000 Foundation Grant to assist in the purchase of a new vehicle for the Centre. And recently, we’ve been able to assist with additional volunteers via our Community Volunteers Program.
“When we commenced our partnership with Beyond Bank I could not have imagined that we would receive such wonderful support,” Bev says. “We are very grateful and would encourage other local organisations to get involved with
Beyond Bank Australia’s community programs.”
“The support we have received from Beyond Bank has enabled our staff and volunteers to half the time normally dedicated to fundraising efforts and get on with the important work of providing a valuable community program.”
If you’d like information on our Community Volunteer Program or Community Reward Account, please call us.
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A partnership for all volunteers
Volunteering Australia is Australia’s national peak body for volunteering and along with a network of State and Territory peak bodies, their aim is to promote and represent the interests of volunteers, and the roles they play in the community.
In 2013, we became the major partner of Volunteering Australia, quite simply because we believe volunteering is one of the best ways to make a real difference and the partnership enables us to assist Volunteering Australia to continue their remarkable work.
Brett Williamson, CEO Volunteering Australia, said. “We are very pleased to be partnering with Beyond Bank; they share our values.”
“Volunteering is something that is intrinsically Australian, it is in our DNA to help each other out. Volunteers contribute so much to life in Australia and certainly add to the social cohesion that we are able to enjoy.”
“An important component of our Beyond Bank partnership is National Volunteer Week, held this year from May 12-18. It’s a time for recognising and applauding volunteers and their contribution… and to raise awareness of their role with the broader community and Government”, Brett said.
Peter Rutter, General Manager of Community Development, shares these sentiments. “Volunteering is an activity that offers many benefits to all involved. For that reason we run a volunteer program at Beyond Bank that offers our employees and members the opportunity to get involved by volunteering at local community organisations”.
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The information contained in this newsletter has been drawn from sources believed to be reliable. Every care has been taken to ensure the accuracy of the information contained in this
newsletter. However we take no responsibility for any errors or omissions. Investment stories are intended for guidance only and do not take into account your financial objectives, financial
situation or needs. We recommend that you seek appropriate advice before making any investment decision. Copyright is reserved throughout this publication and may not be reproduced or
printed without the express consent of the publisher. Beyond Bank Australia Ltd ABN 15 087 651 143 AFSL Australian Credit Licence 237 856. Licensee Select is a division of Westpac Banking
Corporation ABN 33 007 457 141 and provides various financial planning support services to independent financial planning firms across Australia.