THE Police and Nurses Credit Society is expecting a before-tax profit of around $10 million for the current financial year.
CEO Fred Huis said the expected result would be due to improved internal efficiencies but also because the society’s heavy investment in technology in the 1999/2000 year was now starting to pay off.
It won’t be much greater than $10 million but it will be in that region,” Mr Huis said.
Police and Nurses’ recent merger with Energy Credit Union – which boosted its membership by about 15,000 accounts to more than 70,000 members – will also be a significant factor in the profit improvement. Last year the credit union reported a pre-tax profit of $8.8 million.
From July 1, Police and Nurses will reduce its trans-action fees on savings accounts by 10 per cent
“As a mutual our customers and shareholders are the same, therefore we don’t have to earn a profit from one to give to the other. Where possible, when we gain efficiencies internally, we try to pass the benefits on to the members as fast as possible,” Mr Huis said.
“Ultimately I think all financial institutions will get so much pressure about their high fees that they will have to start reducing them. We just want to be at the forefront of that.”
