This last financial year has seen many changes in our industry, but with these significant challenges come opportunities which have led to some outstanding results of which the Board and management at Summerland can be tremendously proud.
Financial Performance and Market Conditions
We have seen some excellent growth as an organisation, so I am therefore pleased to report a net profit of $3m this last financial year. Given the continued challenging market place we experienced again this year, this result highlights the strength and efforts of our management teams and staff across the organisation.
It is particularly pleasing that while we have continued to shrewdly manage the finances of the organisation, we have still been able to introduce new technologies like our wearable devices that give our customers a whole new banking experience.
As the first customer owned financial institution on the Far North Coast to introduce a wearable payment method for its customers, it is a testament to our team at Summerland that we continue to be at the forefront of new technologies and initiatives within the market place.
In the last twelve months, our assets have grown by $23m to $689m overall.
With our loans portfolio continuing to enjoy substantial growth of 8%, despite APRA continuing to impose macroprudential standards which disproportionately affect the Mutual sector, we can be excited about what this new financial year brings. I will have more to say about the external forces affecting the Mutual sector later in this report.
I am pleased to report that we have been in the position to make a difference to over 570 families, couples and individuals by assisting them into home ownership by offering competitive rates and award-winning products and customer service from our staff.
I would like to take this opportunity to congratulate our Credit Team on the important role they continue to play by providing great customer service with their quick assessment of loan applications, in many instances in less than 24 hours, and with careful and empathetic consideration of a customer’s circumstances to avoid financial hardship.
In September 2016 I was honoured to be elected as a director of COBA, the national peak body representing Mutual Banks, Building Societies and Credit Unions. I was particularly pleased to be able to follow in the footsteps of our CEO, Margot Sweeny who had just stepped down after serving a maximum nine year term as a COBA director.
It is crucially important to Summerland to be able to perform at that level, not only because it provides a forum in which Summerland’s voice can be heard at the highest level, it is also a means by which the Summerland Board and management can be constantly kept up to date with developments in the Mutual sector.
COBA has been active in challenging some of the actions taken by APRA to take the heat out of the housing market. Whilst it is clear that the troublesome hotspots have been Sydney and Melbourne, the remedies which APRA imposed - a 10% limit on investment loan growth and flow limits on interest only lending of 30% - were applied across the entire banking sector. By their very nature they had a disproportionate effect on the smaller players and the mutual sector. In that way, the limits were seen as using a sledgehammer to crack a nut.
COBA has been constantly taking up these issues and others with both APRA and the Treasurer’s Office. COBA has been successful in persuading Government that all members of the Mutual sector should be entitled to use the word “Bank” in their name and their promotional material.
Summerland has no plans at this time to become a Bank, by name or structure. Your Board remains to be convinced of the benefits.
Likewise, COBA has had success with submissions, to the Productivity Commission for introducing competition policies which might better achieve a level playing field for the Mutuals, and with moves to allow Mutuals to more easily raise capital.
For many years we have read stories of financial scandals and widespread failures within the larger banking sector. After years of stone-walling, the Government finally agreed last November that there should be a Royal Commission held into Misconduct in the Banking, Superannuation and Financial Services Industry.
The appointment of COBA’s new CEO, Mike Lawrence coincided with that announcement so he really had to hit the ground running. Having had prior experience of two Royal Commissions (as a Government lawyer) I was pleased to be appointed to the COBA Royal Commission working party, to monitor the evidence and submissions given to the Royal Commission, so as to be in a position to ensure the Mutual voice is heard at the right time.
The fear yet again is that there may well be recommendations coming from the Royal Commission which are aimed at the larger institutions in the financial services sector, which might be applied across the board and disproportionately affect the Mutual sector, which has not been identified with a degree of malfeasance.
As a customer owned financial institution, we are in a position of strength. Our values, ethics and adherence to regulations ensures that even before any findings are released, we have always been acting in the best interests of our customers, who continue to be the owners of Summerland.
Come 1st February 2019, when The Royal Commission’s final report and recommendations across the industry will be announced, we believe our strength, financial sustainability and values based culture over the past 54 years will be the recognised standard within the market place.
In closing I thank my fellow directors for their individual and collective contributions over the past 12 months and I congratulate our Chief Executive Officer Margot Sweeny, her senior management team and all of our staff for their outstanding commitment to the organisation and for the excellent results they have achieved under very challenging circumstances.
CEO's Report
Diversity is one of the many ideals within Summerland that we are extremely proud of and one that we encourage within our workforce and communities. We have an open and inclusive policy to all faiths, lifestyles, cultures and ethnicities.
The 70:30 ratio of female to male staff within the organisation is also a statistic which is extremely rare within our industry and illustrates our uniqueness as an organisation.
Externally, we are open and inclusive of all groups we engage with in the community regardless of whether you are a school looking for financial assistance for a book prize, the Bangalow Billy Cart Derby or a local football club seeking sponsorship. On a personal note, it was wonderful to celebrate the beginning of 2018 in Lismore with the New Year’s Eve Tropical Fruits celebrations with our staff and our diverse local community.
Our community is at the heart of everything we do. That was why it was important last Christmas that Lismore Branch Manager, Graeme Herne, and I visited the various organisations that received financial assistance through the $40,000 in flood grants we made available; to wish them the very best for the Christmas period and the future ahead.
Going into the 2018/2019 financial year, we will continue to support our diverse communities by following our mission of providing advice you can trust by listening, thinking unconventionally and acting quickly.
At Summerland we believe that our purpose, why we all come to work every day, is to make a difference for our families, our staff, our customers, the environment and our communities.
values
We believe in making a difference at both a local and international level. This belief in our ability and indeed our responsibility, to make a difference drives our actions, the partnerships we form and the experiences we deliver. What makes us different is the way we do things.
Everyone from the Board of Directors to our newest employee work and live to a common set of Shared Beliefs and Guiding Principles which are encapsulated in our Values. It’s the Summerland way.
We are coming into our 12th year of living the values, through everything we do. The Shared Beliefs and Guiding Principles are encapsulated in our corporate values:
Sustainability – We are a values based organisation responsible for living off the earth’s renewable resources.
Community – We have a strong presence in the community and support diverse groups, working collaboratively and cooperatively with them.
Ownership - As owners, our customers have the right to expect a level of service and assistance that provides more than what a bank offers.
Respect - We maintain an environment of full disclosure and transparency in reporting. We are committed to operating in a trusting, fair and equitable manner, accepting the diversity of our customers.
Ethics - Summerland’s business model is based on being a socially responsible, ethical and prudent organisation. We share our community’s values and communicate with them about how we live these values every day.
customers
These last few years have seen shifts in the ways customers engage with us. Gone are the days that many of us would visit our local branch weekly to do our banking.
Customers are now engaging with us through multiple platforms, as I will discuss in Digital and Data.
To maintain a relevant and effective branch network, investments are being made in upgrading services in a number of Summerland branches to better meet the changing needs of our customers. This meant after a thorough review of our branch operations we made the decision to close our Alstonville and Ocean Shores branches in October 2017.
Summerland has operated a branch on campus at Southern Cross University (SCU) for many years providing staff and students access to make payments directly to the University for their Tuition and other fees. The contract between Summerland and SCU for the provision of these services expired in December last year and after some deliberation we decided to close the branch in July this year.
We are looking to make a difference to the lives of our customers everyday by providing advice they can trust, expert knowledge and a satisfying customer experience regardless of whether they contact us via Facebook, eBranch or visit us in branch.
Our support for organisations and events in the community which our customers are invested in is one of our key values. More information on our significant community partnerships during the last year are highlighted later in the report.
digital and data
We want to give our customers as many opportunities to connect with us, be it face to face through our branch network, via telephone, email, website or our social media channels, so we can make their life easier when they need us.
We were the first financial institution on the Far North Coast to introduce a wearable payment device and at no cost to our customers. As technology changes, we are at the forefront of how this impacts the financial sector and how these new technologies like the Summerland Wearable can add value and offer new and satisfying experiences for our customers.
In keeping with our strategic goals, we have implemented Microsoft Office 365 across our entire work force to keep abreast of current technologies in the cloud. This has enabled us to keep capital costs down, removed the need for onsite infrastructure and enhanced organisational security. The platform has also enabled us to keep up-to-date with the latest software and increased opportunities for collaboration amongst our staff, regardless of where they are based.
Likewise, with the eBranch and our new cloud based telephone system, our staff can now work remotely from anywhere; for the greater benefit of our customers.
The eBranch is the one branch that can be contacted digitally via our website or telephone and it is for those people that are not close to a branch but still want to access their banking or the expertise and advice of our banking advisors and lenders.
It doesn’t matter if you’re in Lismore, Canberra or Melbourne, you’ll receive the same award-winning service from our digital eBranch as you would if you were stepping into one of our branches
our people
We aim to be seen as an employer of choice in our region, having been nominated for a number of awards within the region in the last 12 months including:
- Ballina Chamber of Commerce Business Excellence Awards - Professional Service
- Lismore Chamber of Commerce and Industry Business Excellence Awards - Employer of Choice
- Tweed Chamber of Commerce and Industry Business Excellence Awards - Excellence in Professional Services
We offer a number of initiatives to help support our staff depending on their circumstances, so they can achieve the best work-life balance to suit them.
At Summerland, we work hard to ensure we provide an environment where employees and others in the workplace are treated fairly, with respect, and are free from discrimination, harassment, vilification and victimisation.
This is one of the reasons why we are working towards White Ribbon Accreditation; complementing our values of Respect and Ethics, whilst strengthening our existing gender equality and diversity initiatives within all levels of the organisation.
We believe in providing our staff with the learning and development opportunities that allow them to grow the skills and knowledge they need to perform at the highest possible standard and this year we invested a significant amount of time and money on learning and development opportunities for all our staff.
101
staff members
76%
full time
1.65%
absentee rate
70:30
female to male ratio
strength and sustainability
We have had a very good year and have come out stronger for it. We have a strong brand presence within the Northern Rivers and this is illustrated through the strength of our financial results.
As an organisation, this year has seen the introduction of Social Sustainability Month in September. This is a celebration of our investment in communities locally, nationally and internationally; be it through sponsorship of local events like the Bangalow Billy Cart Derby or Lismore Thistles through our Summerland Football products and services.
Our Cash 4 Clubs and Cash 4 a Cause programs enable customers to do their everyday banking and earn cash back for their local organisation or group.
Support of the CUFA village entrepreneur program in South-East Asia and our staff volunteering in the local community is all part of our social sustainability story.
$3.1m
profit
$689m
assets
16.83%
capital adequacy ratio
$1.05m
returned to our communities
community
During the last financial year, Summerland has invested in many organisations and events. We are currently in the process of introducing a new volunteer program for our staff to give them more opportunities to get involved with organisations in our local community.
As in past years, we have returned over $1 million to our communities through direct and indirect support.
Significant Partnerships
During the last year, our staff have been actively involved in supporting a range of organisations and events in the community across the Northern Rivers, Queensland, Victoria and ACT.
Northern Rivers NSW
Ballina Meals on Wheels – In 2017/18, our Ballina branch staff have been making a difference by volunteering over 35 hours to the lives of older people and those with a disability by providing a smile, a conversation and a meal they can enjoy.
Bangalow Billy Cart Derby – We were the naming rights sponsor of the 2017 community event which attracted over 150 billy cart racers from across Northern NSW and Queensland. Our staff made a difference to the day by marshalling the finish line, commentating on the races and conducting a chalk art competition for kids.
Bangalow Blue Dogs – Having been a partner of the football club for almost 10 years, we gave over $300 back to the club through our Cash 4 Clubs program last financial year, and raised $500 for the club at a home match day through a BBQ run by Summerland staff volunteers. Our partnership grew this year as a major sponsor of the men’s and women’s premier teams.
Beef Meets Reef – This iconic event in Evans Head continues to draw over 7,000 people to the region. We were delighted to support the event through our sponsorship of the Street Parade and our chalk art competition.
Cudgen Headland Surf Life Saving Club – We continue to be a major supporter of the NSW Club of the Year through our Cash 4 Clubs program for club members and as a bronze club sponsor.
Dunoon United – Through our Summerland Football products and services we sponsor the 2017 Northern NSW Community Club of the Year’s third grade women’s side, and provide fundraising opportunities to the club and its members through our Cash 4 Clubs program.
East Lismore Bowling Club – We were the major sponsor of the Annual Classic Carnival, which attracted competitors from across the North Coast for this special event.
Surfing Far North Coast – This was the third year that we have supported the Regional Titles competition at Sharpes Beach; which showcased some of the region’s best surfing talent.
Lismore Thistles – Our partnership with Thistles and the sponsorship of their women’s premier side continued this year, with support for their junior gala day and junior end of season awards being a big part of our commitment to grassroots football and the Lismore community.
Mullum 2 Bruns Paddle – We were delighted to once again be involved in this wonderful community event as a principal sponsor and by providing kids in attendance the opportunity to take part in our chalk art competition.
Nimbin Headers – As a supporter of the club, we got behind the club’s inaugural Mini Shield Tournament, with all the proceeds from the day being donated to charity.
Southern Cross University – We have been a supporter of the university and its students through the Rising Stars Scholarship program for over 25 years. This is a program we continue to be involved in this year through our sponsorship of three students with their studies.
Sustainable House Day – In keeping with our values, we supported this event that celebrates sustainable housing through our Eco Loans products; providing a 25% discount off the loan establishment fee and a charitable donation to an environmentally focused organisation.
The Salvation Army – As part of The Salvos annual Red Door Knock Appeal we were pleased to offer payWave terminals and traditional collection tins across our branch network that allowed customers to donate funds to help support a range of social and community services across the region.
Wollongbar Alstonville Rugby Club – As a Cash 4 Clubs beneficiary, the club has received $300 from us this year, through club member engagements with us.
Queensland
Gold Coast Champions Cup – The tournament invited over 100 teams from across Australia. We were delighted to be a supporter of the referees and ran a Score and Win engagement for players and parents to take part in.
Gold Coast Female Soccer Academy – We have been a major sponsor of the all-girls academy this year, and saw their u16 side take home the Kanga Cup in Canberra in July. Off the pitch, we have been working with the club with their ongoing growth towards becoming a fully-fledged club.
ACT
Canberra United – As the Official Banking partner of the W-League side, we gave away match day tickets during every home round to fans and provided opportunities to take part in our Score and Win competition at half time to win cash prizes. On our home match day in January, we supported the all-abilities Football Connect program by giving away wristbands for a gold coin donation from fans. The day raised $500 for the program.
Capital Football – We continued our partnership with the football federation for ACT by supporting their all abilities Football Connect program, which received a Commendation for Inclusion in Education and Training at the 2017 Chief Minister’s Inclusion Awards. The introduction of the monthly Summerland Football Club Hero awards, which celebrates the contribution of volunteers in the community, has become a popular addition to the ACT football community.
Kanga Cup – This was the second year we have supported the biggest youth football tournament in the southern hemisphere, which attracts 175 teams. As part of our support for the week-long event, we sponsored the Athletes with a Disability Day.
Victoria
Geelong Galaxy United – We have continued to support the National Women’s Premier League side through our sponsorship of the club and our passion for women’s football.
Mazenod Victory – Following the merging of Mazenod United and Waverley Victory, we have been delighted to be a part of supporting the club through this exciting part of their future through our Cash 4 Clubs program.
RMIT University FC – We were the first external organisation to support a sporting team at the university and our partnership has continued to grow through our support of their men’s and women’s sides at the club through our Cash 4 Clubs program.
power
There was a 4% increase in energy consumption of Summerland owned and leased premises this year, with 4996 kWh consumed per FTE.
Accredited renewable energy take-up in electricity contracts is currently 10% pa.
2018
2017
2016
2015
paper
Internal paper usage for the 2017/18 year was 3,933 sheets of normal copy paper per FTE. This is a 29% drop on the previous year.
Improving the environmental impact of the paper we purchase and use in our marketing collateral and member communications, 100% of A4 copy paper and customer statement paper is certified carbon neutral under the National Carbon Offset Standard Carbon Neutral program.
2018
2017
2016
2015
vehicles
The corporate vehicle fleet used 10,683 litres of fuel and 114 km per FTE. This is a 10% increase on the previous year.
Utilising video or teleconferencing forms part of the assessment when making staff travel decisions.
2018
2017
2016
2015
air travel
Business travel by air in 2017/18 consisted of flights covering 93,868 kms, which equated to 1,009 km per FTE.
This is a 28% reduction on the previous year.
2018
2017
2016
2015
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