Auswide Bank reported a considerable drop in its net profit after tax for the fiscal year to June 30, with a 55.2% decrease to $11.231 million compared to the previous year.
Despite challenging market conditions, the bank achieved modest loan book growth and a significant rise in customer deposits.
The bank's loan book grew by 0.6% to $4.429 billion, while deposits increased by 8.0%, now constituting 75.3% of its funding base.
Additionally, the capital adequacy ratio stood strong at 14.78%, indicating a well-maintained balance sheet.
Auswide Bank took a conservative growth approach, focusing on stability and risk management.
Managing Director Doug Snell stated, "We're committed to pursuing opportunities that deliver sustainable growth and maintain our strong capital position."
The bank announced a final fully franked dividend of 11 cents per share, reflecting a payout ratio of 96%.
This follows a total dividend per share of 22 cents for the year.
Amidst a volatile economic environment, Auswide Bank reported a decline in net interest margin from 1.88% to 1.42%.
The bank's operating expenses were tightly managed, with only a 1% increase, excluding expected credit losses.
Auswide Bank also announced the launch of a new share purchase plan for its eligible shareholders, aiming to raise up to $3 million.
The move follows the bank’s recent completion of a fully underwritten $12 million placement.
The share purchase plan is non-underwritten and allows eligible shareholders to subscribe for up to $30,000 worth of new fully paid ordinary shares at a price of $4 per share.
At the time of reporting, Auswide Bank’s share price was $4.30.