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1、Mutuals Industry Review 2022An impactful and progressive futureCELEBRATING 35 YEARSContentsKey highlights from our 2022 Mutuals Survey 073.Preface 094.Year in review 062.2022 Financial Results 105.KPMG insights on key topics6.Acknowledgments 388.Contact us 399.Appendix 357.6.1Community impact assess
2、ment of customer owned banks256.3Mutual gains through RegTech306.2Four winning strategies to compete for top talent276.4Proactively managing climate risk32Introduction 031.2MUTUALS INDUSTRY REVIEW 20222022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independen
3、t member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professio
4、nal Standards Legislation.IntroductionThe 2022 financial year saw the Mutuals increase net assets by 7.8 percent to$11.2 billion(2021:increase of 5.5 percent).At the same time,overall operating profit before tax declined by 11.1 percent(2021:37.9 percent increase)to$604.7 million(2021:$680.5 million
5、).The decrease in operating profit before tax was primarily a result of contracting profit margins due to a(slowing)decrease in net interest margins and a slight increase in cost-to-income ratios.Following on from two disruptive years in 2020 and 2021,the 2022 financial year again saw significant ev
6、ents and challenges.Not only did all Mutuals face into deteriorating economic conditions and rising interest rates,many also were exposed to significant climate-related weather events(especially floods).Continued economic growth in combination with a range of supply-side constraints,have resulted in
7、 a spike in inflation.The series of interest rate increases that the Reserve Bank of Australia(RBA)has subsequently put through are affecting the Mutuals and their members in several ways.Especially in the second half of the financial year,this has resulted in an arrest in the long-running slide in
8、net interest margins(as lending rates have increased more than deposit rates),a nationwide decrease in house prices and a more restricted willingness and ability by customers to borrow to own or invest in homes.The floods in many parts of Australia at the same time provided a stark reminder of the e
9、xposure of many Mutuals to local weather events.Especially for smaller lenders with a geographically concentrated membership it reinforces the need to understand and manage future climate risks within their loan books.In this turbulent environment,we have observed several strategic and financial key
10、 issues for Mutuals coming out of 2022 and going into 2023:StrategicBy 2 November 2022,the official cash rate set by the RBA was 285bps.This represents a sharp increase from a low rate of 10bps,prior to the rate rise to 35bps on 4 May 2022.This was the first rate rise since 3 November 2010(when the
11、RBA took the cash rate to 475bps).The end of a long period of low interest rates in the final quarter of the 2022 financial year is having various major impacts on the residential lending market that the Mutuals focus on the balance of these impacts pointing to a slowdown in mortgage lending perform
12、ance:Darren BallNational Mutuals Leader KPMG Australia3MUTUALS INDUSTRY REVIEW 20222022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights re
13、served.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Across Australia,house prices are reducing from historical heights Lending demand by both ow
14、ner-occupiers and investors is lower than it has been for over two years Large numbers of borrowers that took out fixed rate mortgages in recent years will need to refinance their loans at higher rates during especially the 2022-2024 period Loan repayments slow down as a higher proportion of mortgag
15、e payments goes to interest repayments rather than to principal reduction As a number of households start to struggle to mortgage affordability,there will be an increase in loan defaultsThe requirements for the Mutuals to invest continues to increase(putting pressure on both their capital base and t
16、he need to generate profits).In addition to investments in regulatory compliance(including for instance in improved readiness in response to fraud and cyber incidents)and in digital transformation and innovation,there is also a growing need to invest in ESG initiatives.While this investment theme is
17、 true for all banks,it impacts the Mutuals disproportionally due to their relatively small size.Talent scarcity is an issue for many Australian employers.It is of particular focus for Mutuals for two reasons:access and affordability.In terms of access to scarce talent,note that according to the Mutu
18、als impact assessment that KPMG has conducted on behalf of the Customer Owned Banking Association(COBA)over half of all Mutuals staff live and work outside of the metropolitan areas.With regards to affordability,the Mutuals compete with the major banks for the same risk and technology professionals.
19、The sector needs to find ways to attract and retain talent to continue to develop.Finally,consolidation remains a major topic in the sector.Many Mutuals are looking to grow through mergers as the limitations of operating medium-and small-scale banks(especially cost inefficiencies and the ability to
20、invest)remain firmly in place.The recent stabilisation of net interest margins will not change momentum for mergers between Mutuals.FinancialFor the most part of the 2022 financial year,a combination of low interest rates,rising property prices and high employment continued to drive mortgage lending
21、 growth for the Mutuals.These same dynamics also contributed to low levels of lending losses and loan loss provisions.The 2022 results for the sector reflect this strong mortgage lending performance.The change in the economic environment that started with the interest rate rises in May 2022 did not
22、yet have a major impact on the Mutuals results for 2022.However,a less benign residential housing market is expected to feature in the 2023 financial year.Net interest margins in Australian banking had been on a long downward march.The interest rate increases from May 2022 have arrested this trend,a
23、nd margins have finally started to increase.In recent months,lending rates have increased more than deposit rates.The question for 2023 is whether margins will continue to expand(noting that competition for deposits will put upward pressure on deposit rates).Cost efficiency remains a challenge for t
24、he Mutuals.In large part to their relatively small scale,they have a higher cost-to-income ratio than most larger commercial banks.This does restrict their ability to compete.The response to this issue is for Mutuals to seek the benefits of scale through organisational simplicity,sector utilities(fo
25、r instance for payments services)and investment in productivity-enhancing technology as well as through consolidation.In an uncertain world and in challenging conditions,the Mutuals continue to be a constant support for their members.To remain strong contributors to their communities,they dont stop
26、evolving with the world around them.Therefore,the theme for this 35th annual sector review by KPMG is:An impactful and progressive future.In terms of impact,the Mutuals punch well above their weight.This review includes a summary of the sector impact assessment that KPMG has just completed on behalf
27、 of COBA.Our analysis has confirmed that the Mutuals deliver an outsized impact for their members,their staff,the communities that they serve and the Australian economy,relative to the size of their balance sheets.Examples of this include their substantial branch footprint throughout all of Australi
28、a to serve their members,and the number and the quality of the jobs that they provide to their skilled and engaged staff.4MUTUALS INDUSTRY REVIEW 20222022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International L
29、imited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.How you grow matters.If t
30、he Mutuals want to continue to make such an outsized impact for members and communities,they need be progressive on several fronts.Noting the unique nature of the Mutuals as relatively small players in a large banking sector with an outsized presence in many communities and sectors throughout the wh
31、ole of Australia we have identified a number of focus areas for innovation by the Mutuals:Identifying,attracting and engaging talent,particularly in fields of high global and Australian demand Accessing innovation,scale and simplification that is normally only available to larger banks through“as a
32、Service”models Partnering with regtechs to respond to regulatory compliance requirements more effectively and efficiently Managing the substantial climate risks in their lending books proactively,as extreme weather events become the new normal in AustraliaThe success of the Mutuals in seizing the op
33、portunities and dealing with the challenges will determine how they continue to make an impact through the delivery of member value and community contributions.A proactive and responsive Mutual sector will be able to build on its positioning as“purpose-driven organisations”,to continue to find new w
34、ays of serving their members and their communities.We trust that you find this publication insightful.KPMG looks forward to supporting the next 35 years of impact and progress in the sector.5MUTUALS INDUSTRY REVIEW 20222022 KPMG,an Australian partnership and a member firm of the KPMG global organisa
35、tion of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approv
36、ed under Professional Standards Legislation.2 mergers completed (2021:2)Write back of credit provisions of$19.5m (2021:write back of provisions of$34.9m)Operating profit before tax decreased by 11.1%to$604.7m (2021:$680.5m)Lending grew by 8.1%to$120.9b (2021:$111.9b)8.1%11.1%$19.5mDeposits grew by 7
37、.0%to$124.9b (2021:$116.7b)7.0%Non-interest income increased by 2.4%to$430.7m (2021:$420.6m1)2.4%Cost-to-income ratio increased by 48bps to 80.3%(2021:79.9%)48bpsYear in review 2022 highlightsAverage capital adequacy ratio decreased by 6bps to 16.29%(2021:16.35%)6bps2Net interest margin decreased 6b
38、ps to 1.93%(2021:1.99%)6bps2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under
39、license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.6MUTUALS INDUSTRY REVIEW 20221 1 2022 non-interest income was adjusted for a Mutual to exclude proceeds from a one-off transaction.2022 non-interest
40、 income was adjusted for a Mutual to exclude proceeds from a one-off transaction.Key highlights from our 2022 Mutuals Survey Top 3 contributors for growth:Better product pricing27.5%Better customer service23.5%Customer centricity&productinnovation16.3%Top 3 key technology challenges*in the next 3 ye
41、ars:Cyber security38%Legacy systems18%Cost reduction&Channel digitisation16%*Note:Rankings are based on overall responses among the top 5 choices in this question.Top 3 biggest risks:Information technology including cyber risk42.6%Attracting and retaining talent18.5%Compliance®ulations14.8%Top 3
42、greatest competitors for the mutuals:Big-4 banks62.3%Other banks22.6%Brokers9.4%Top 3 priorities for the next 3 years:Maintaining profitable and sustainable growth 56.6%Digital transformation20.8%Acquisition or merger13.2%75%of respondents feel confident about the 3 year growth prospects for mutuals
43、,compared to 78.1%in 2021.(These two options were equal 3rd in ranking from the survey)2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All right
44、s reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.7MUTUALS INDUSTRY REVIEW 202225.5%of respondents anticipate being involved in merger act
45、ivity during 2022 (2021:24.4%).21.6%are considering the possibility(2021:19.5%).50.0%Over 50.0%of respondents place high importance on ESG,which is regarded as a way to differentiate themselves;while30.8%of respondents believe this is an important area for their organisations,but they are not lookin
46、g to go above and beyond.75%of mutuals consider themselves prepared for a cyber-event.Future net interest margin expections in the next 3 yearsCost efficiency development expectations in next 3 yearsIntention for business transformation2021 has seen a shift in intentions around business transformati
47、on,with respondents indicating a significant increase in the focus on full end-to-end transformations and ancillary systems transformation compared to 2020.Full end-to-end transformation envisagedCore banking system transformationAncillary systems transformation-e.g.Tax/General Ledgers/FinanceOther,
48、please specify35.82%16.42%26.87%20.90%46.34%9.76%43.90%21.95%FY22FY21Deteriorate(cost-income ratio up by 2-5%points)NeutralImprove(cost-income ratio down by 2-5%points)Strongly improve(cost-income ratio down by more than 5%points)Strongly deteriorate(cost-income ratio up by more than 5%points)23.08%
49、9.62%3.85%13.46%50.00%IncreaseDecrease strongly(more than 10 bps)Decrease moderately(between 5-10bps)Decrease slightly(between 2-5 bps)Stay at its current level13.46%9.62%25.0%38.47%13.46%2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firm
50、s affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards
51、 Legislation.8MUTUALS INDUSTRY REVIEW 2022This report examines the performance and trends of Australias Mutual banks,building societies and credit unions(together,the Mutual sector)as regulated by the Australian Prudential Regulation Authority(APRA).This is the 35th year of the report.It includes th
52、e financial results of 47 Mutuals for the 2022 financial year(2021:46 Mutuals),which represents over 99 percent(2021:98 percent)of the Mutual sector by total assets.The financial information,analysis and observations have been compiled from publicly available financial reports,APRA statistics and in
53、cludes information from the prior year.In certain circumstances,data has been obtained directly from survey participants.This report also includes the results of our qualitative survey,which asked Mutuals to share their views on the risks,challenges and opportunities they see the industry being expo
54、sed to.This year we had a response rate of 70 percent(2021:66 percent).This reflects the Mutual sectors eagerness to come together,leverage experiences and operate in unity.For the purposes of reporting,we have often grouped the Top 10 Mutuals by total assets(the Top 10)as well as the remaining Mutu
55、als(Mutuals excluding the Top 10).We have also made reference to the financial results of the Australian major banks(the Majors).We would like to thank the survey respondents for their time,support and contribution to this report.The KPMG Mutuals Insights DashboardThe KPMG Mutuals Insights Dashboard
56、 which accompanies this report contains interactive charts and graphs that are underpinned by the financial data collected from mutuals surveyed.This dashboard enables you to filter the data based on your own preferences and view the financial metrics for a particular year or segment of the mutual s
57、ector.You can also view metrics for an individual mutual in comparison to a peer group.The dashboard can be accessed via our website.Preface9MUTUALS INDUSTRY REVIEW 20222022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with K
58、PMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.2022 F
59、inancial Results10MUTUALS INDUSTRY REVIEW 20222022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are tra
60、demarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.AssetsThe Top 10 Mutuals,by total assets,have maintained their presence in the Top 10 since 2016.However,2022 has witnessed movem
61、ent within the rankings compared to 2021.Please note that asset growth(7.5 percent for the sector)has been lower than loan growth(8.1 percent in comparison)and that the asset growth ranking therefore does not wholly reflect lending growth performance.2%6%7%4%14%7%8%4%3%13%IMBP&NBeyondGreaterBank Aus
62、TeachersPeoples ChoiceNewcastle PermanentHeritageGreat Southern2%9%10%-1%17%10%9%7%5%11%$21.31B$12.32B$12.14B$10.44B$10.44B$9.67B$8.38B$8.29B$7.34B$7.07B$15.00B$9.35B$9.77B$8.81B$8.64B$7.39B$5.42B$6.80B$5.83B$5.57BTOP 10 BY TOTAL ASSETS($)2022 GROSS LOANS($)2022Total assets for the Mutuals increased
63、 by 7.5 percent(2021:7.6 percent)to$158.8 billion in 2022(2021:$147.7 billion),despite a year of deteriorating economic conditions and continued competitive pressure from other lenders.In 2022 the Australian economy faced the challenges of high inflation and extreme weather events.To remain competit
64、ive with the broader banking industry,the Mutuals maintain a strong focus on supporting customer and sectoral community needs.This is evident with 51 percent of our survey respondents identifying customer experience and product pricing as the key contributors to growth in 2022.Mutuals comprise of 2.
65、6 percent(2021:2.7 percent)of total assets across all authorised deposit-taking institutions(ADIs)in Australia at 30 June 2022.As total asset growth for Mutuals slowed in 2022,the reduced market share reflects the strong competition in the mortgage lending market.The sector outlook remains positive
66、in the face of ongoing market and economic uncertainty,with 75%of survey respondents revealing they feel confident in their 3 year growth prospects(compared to 77%in 2021).Total asset growth across the sector was primarily driven by lending growth.The Top 10 as a collective experienced continued gro
67、wth in Total Assets at an average rate of 7.4 percent(2021:6.8 percent),compared to the Majors who grew 9.3 percent(2021:1.7 percent).The differing levels of asset growth achieved across the sector is reflective of varied approaches adopted by the Mutuals in addressing market conditions.The highest
68、level of growth in the sector was experienced by Illawarra Credit Union whose strong mortgage portfolio performance was driven in part by a twelve month refocused distribution strategy and investment in new channels.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisatio
69、n of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved
70、under Professional Standards Legislation.11MUTUALS INDUSTRY REVIEW 2022Illawarra Credit Union 38.4%-10%-5%0%5%10%15%20%25%30%35%40%45%05,00010,0005,00020,000Top 10Mutuals excluding Top 10Bank Australia 14.2%Gateway Credit Union 27.5%GrowthTotal Assets for 2022($million)05101520GreatSouthernNewcastle
71、 PermanentHeritageTeachersPeoples ChoiceGreaterBank AusBeyondP&NIMB200212022($billion)TOP 10 TOTAL ASSETS(2018 2022)2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private Englis
72、h company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.12MUTUALS INDUSTRY REVIEW 2022Loan portfolioThe
73、total loan portfolio for Mutuals in 2022 was$120.9 billion(2021:$111.9 billion),an 8.1 percent increase from 2021(2021:5.2 percent).This is in line with the banking sector as whole,which observed loan growth of 8.8 percent(2021:1.7 percent).The Mutuals performance reflects their continued focus on p
74、roviding a high-quality member experience and delivering service focused lending,a topic which 29.4 percent of respondents to our survey consider to be their number one success factor.Residential lending marketThe high concentration on residential lending across the Mutuals remains consistent in 202
75、2,with 93.2 percent(2021:92.8 percent)of their portfolio comprising residential loans at 30 June 2022.Whilst lower compared to previous years,the Australian residential market had another strong performance 2022 with reported average property price growth of 11.7 percent(per ABS data).Our survey res
76、pondents ranked increasing residential lending as the biggest driver of growth,with the digitisation of banking services and offering new and competitive choices identified as second and third respectively.8.8%7.6%8.1%0%2%4%6%8%10%200212022All ADIsMajor BanksMutual BanksLOAN PORTFOLIO GRO
77、WTH(2018-2022)2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by th
78、e independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.13MUTUALS INDUSTRY REVIEW 2022Interest rates and inflationThe first half of 2022 continued a trend of historically low interest rates combined with high employme
79、nt that drove the mortgage strong growth observed by the Mutuals.However,a clear shift in the economic environment has arrived,signalled by the rise of interest rates in May 2022 and significant increase in reported inflation.Whilst this did not have a major impact on the Mutuals results for 2022,th
80、ese factors are expected to present a turnaround in loan growth in 2023.Competitive pricing and innovative responsesThe 2022 fiscal year saw increasing competition in the banking market,including renewed growth by the Major Banks.The Mutuals face this competition with a focus on growing market share
81、 through sustained competitive pricing while also remaining strong contributors to their communities.In fact,27.5 percent of our survey participants indicated that competitive pricing was the main contributor to their financial performance and market share growth in 2022.While the sector continues t
82、o compete on price with the broader financial services market,it also continues to pursue innovative initiatives,including investment in digitisation.Examples of this include:Defence Bank rolling out a new paperless digital personal loan solution providing fast approvals and funding within 20 minute
83、s,helping drive a 25 percent growth in personal loans.Great Southern Banks delivery of a new,transformational home loan origination system,which has halved approval times while doubling the number of applications processed.Commitment to the communityThe Mutuals also maintain powerful bonds with thei
84、r members and the communities that they support,which continues to be a strength of the sector.In line with this there is a continued focus on growth that is not only sustainable,but also environmentally and socially responsible.An example of this is Bank Australia extending their green mortgage pro
85、duct offering in 2022 with a clean energy home loan providing greater discounts for homes that are both energy efficient and generating their own renewable power.Did you know?2022 Canstar Award winners include:Customer Owned Bank of the YearGreat Southern BankCustomer Owned Bank of the Year Fixed Ra
86、te Home Loan Award Hume BankCustomer Owned Bank of the Year Savings AwardGreat Southern BankCustomer Owned Institution of the Year Term Deposit AwardG&C Mutual Bank2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG I
87、nternational Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.14MUTUALS I
88、NDUSTRY REVIEW 2022Asset Quality Asset quality has generally improved in 2022 with the sector observing a further small decrease in the provision for doubtful debts to gross receivables ratio of 2bps in 2022 to 0.14 percent(2021:0.16 percent).Whilst reduced from 2021,provision levels remain slightly
89、 elevated compared to pre-COVID19 periods.GDP increasing to above pre-pandemic levels and record low unemployment has promoted optimism in the wider economy during the 2022 financial year.The significant increase in interest rates observed since May 2022,combined with high inflation and an expected
90、cooling of the housing market will likely cause pressure on asset quality in the medium to long term.Provisioning and asset qualityIn addition to any specific provisions,accounting standard AASB 9 requires the estimation of a general provision called the expected credit loss(ECL).The ECL requires th
91、e incorporation of forecast macroeconomic factors in assessing the appropriate provision to apply against the loan portfolio.In 2022 the Mutuals collectively observed a net write-back of provisions,resulting in a decrease of 10.6 percent(2021:16 percent decrease).The accounting standards also requir
92、e Mutuals to classify their loans into stages with respect to expected recovery in accordance with the accounting standards.Based on publicly disclosed information of a sample of the larger Mutuals,we observed that collective impairment charges formed 90 percent of the total provisioning at the end
93、of 2022(2021:91 percent).For the same sample,60 percent of the loan provisions were classified into stage 1(2021:55 percent)whereas stage 2 and 3 were 22 percent and 18 percent respectively(2021:28 and 17 percent).-0.05%0.00%0.05%0.10%0.15%0.20%0.25%040,00080,000120,000160,000200,000240,0000.13%($00
94、0s)IMPAIRMENT PROVISIONS(2018 2022)Top 10Mutuals excluding Top 10Provision as a%of Gross ReceivablesDoubtful Debts Expense ratio20200.07%0.12%0.21%0.16%0.14%0.04%0.04%0.12%-0.01%0.00%20022*The negative doubtful debts expense ratio reflects the net write-back of provisions in 2021.*The neg
95、ative doubtful debts expense ratio reflects the net write-back of provisions in 2021.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights
96、reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.15MUTUALS INDUSTRY REVIEW 2022CapitalCurrent positionThe Mutuals average capital adequacy
97、ratio decreased by 6bps to 16.29 percent1(2021:16.35 percent).This impact has been felt consistently across the industry for Mutuals outside of the Top 10.Strong asset growth and low interest margins have eaten away at the strong capital positions that the Mutuals have historically enjoyed compared
98、to other banks.0%5%10%15%20%25%CUAHeritageNewcastlePermanentTeachersPeoplesChoiceBank AusGreaterBeyondIMBP&NTOP 10 CAPITAL ADEQUACY RATIO(2018-2022)200212022Major banksMutuals excluding Top 10Top 10APRAs unquestionably strong capital benchmarkAPRAs capital requirement7%9%11%13%15%17%19%AV
99、ERAGE TOTAL CAPITAL ADEQUACY RATIO(2018-2022)15.84%8.00%10.50%20021202215.96%18.10%1 Average capital adequacy ratio excludes a Mutual as an outlier.1 Average capital adequacy ratio excludes a Mutual as an outlier.2022 KPMG,an Australian partnership and a member firm of the KPMG global org
100、anisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme a
101、pproved under Professional Standards Legislation.16MUTUALS INDUSTRY REVIEW 2022DepositsDeposits continue to be the most significant source of funding for Mutuals,with a deposit-to-loan ratio of 103.3 percent in 2022(2021:104.3%).Deposits have continued to increase in 2022,albeit at a slowing pace co
102、mpared to previous years.The Top 10 Mutuals had a deposit growth of 6.4 percent(2021:8.1 percent),compared to the broader group of Mutuals which experienced growth of 8.3 percent(2021:8.2 percent).Total deposits increased by 7 percent(2021:8.3 percent)which is slightly above the growth experienced b
103、y the major banks(6.7 percent).This brings total deposits to$124.9 billion(2021:$116.7 billion)for the Mutuals sector.Net interest income(NII)In 2022,the Mutuals reported an increase in net interest income of 3.9 percent to$2,770.4 million(2021:$2,665.8 million),driven by underlying growth in the lo
104、an book.Of this,66.0 percent was earned by the Top 10(2021:66.9 percent).0%2%4%6%8%10%12%14%16%0204060800022($billion)TOTAL DEPOSITS AND GROWTH IN DEPOSITS(2018-2022)Top 10Mutuals excluding Top 10Total movement5.7%8.8%10.1%8.3%7.0%02004006008001,0001,2001,4001,6001,8002,0002018
105、2022$(million)NET INTEREST INCOME(2018-2022)Mutuals excluding Top 10Top 102022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights
106、reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.17MUTUALS INDUSTRY REVIEW 2022Net interest margin(NIM)Pressure on net interest margins con
107、tinued throughout 2022,however the interest rate increases from May 2022 have started to alleviate this.This is expected to continue improving into 2023,with lending rates having increased more than deposits in recent months.The NIM for the Top 10 Mutuals decreased by 7bps to 1.68 percent(2021:1.75
108、percent)compared to the broader Mutuals group which saw a decrease of 3bps to 1.90 percent(2021:1.94 percent).Non-interest incomeNon-interest income in Mutuals sector is heavily reliant on transaction and services fees.In 2022 this was bolstered by increased levels of customer spending,supported by
109、savings accumulated during the pandemic.Total non-interest income2 increased by 2.4 percent(2021:5.5 percent decrease)to$430.7 million(2021:$420.6 million).The Top 10 reported a slighter higher increase of 3.5 percent(2021:4.9 percent decrease).This increase is smaller than the growth observed by th
110、e overall banking sector.1.5%1.8%1.9%2.0%2.1%2.2%2.4%20021NET INTEREST MARGIN(2018-2022)Mutuals totalTop 10Mutuals excluding Top 10(Based on year-end total assets)1.90%1.81%1.68%2022-5%-4%-3%-2%-1%0%1%0500300200212022($million)NON-INTEREST INCOME(2018-2022)Mutuals ex
111、cluding Top 10Top 10Change in non-interest income(%)0.2%-4.2%3.3%-5.5%2.4%2 2022 non-interest income was adjusted for a Mutual to exclude proceeds from a one-off transaction.2 2022 non-interest income was adjusted for a Mutual to exclude proceeds from a one-off transaction.2022 KPMG,an Australian pa
112、rtnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG g
113、lobal organisation.Liability limited by a scheme approved under Professional Standards Legislation.18MUTUALS INDUSTRY REVIEW 2022Costs2022 saw total operating costs for Mutuals grow by 7.2 percent to$2.57 billion(2021:$2.40 billion billion).Despite income growth during the year,this resulted in the
114、cost-to-income ratio increasing to 80.3 percent(2021:79.9 percent).Whilst the Top 10 has seen an increase in the cost-to-income ratio we note that the ratio for the Mutuals sector excluding the Top 10 has remained consistent in 2022.We note that 20 percent of survey respondents are planning to incre
115、asing investment and 22 percent are planning to invest the same amount as the prior year.The key areas of focus are cyber security,lending origination and open banking.40%45%50%55%60%65%70%75%80%85%200212022COST TO INCOME RATIO(20182022)MajorsMutuals excluding Top 10Top 1081.4%80.0%49.2%0
116、200,000400,000600,000800,0001,000,0001,200,000Occupancy Depreciation TechnologyOtherPersonnel($000)AASB 16AASB 16GROWTH IN COSTS(2018-2022)2002120222022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Intern
117、ational Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.19MUTUALS INDUST
118、RY REVIEW 2022Composition of costsPreviously we had discussed the impact of AASB 16,effective from 1 July 2019,and the resulting shift away from occupancy and other operating expenses,which have traditionally included any head office and branch leases.Under AASB 16,these costs are now reflected in a
119、mortisation/depreciation charge and interest expense.The graph below reflects this from 2020,with the drop in occupancy costs,offset by an increase to depreciation and amortisation.This continues to be the case in 2022,with the composition of costs remaining relatively unchanged year-on-year.Personn
120、el expenses continue to account for the majority of operating costs for Mutuals at$1.32 billion in 2022(2021:$1.2 billion).Employee numbers increased 4.4 percent(from 10,259 in 2021 to 10,653 in 2022),driving an increase in personnel expenses of 9.5 percent(2021:4.0 percent).With record low unemploy
121、ment and skilled migrant workers re-joining the Australian market the hunt for talent is highly competitive and a key focus for the Mutuals.In fact,survey respondents identified attracting and retaining talent as the 2nd biggest risk for their organisation.7.4%6.7%3.2%2.7%5.7%5.5%9.0%8.6%8.5%8.5%9.4
122、%10.1%11.4%10.2%29.2%28.6%27.3%26.7%26.9%49.2%49.7%50.4%50.2%51.8%0%10%20%30%40%50%60%70%80%90%100%200202021COMPOSITION OF COSTS(20182022)OccupancyDepreciationTechnologyOtherPersonnel3.3%2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent m
123、ember firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional
124、 Standards Legislation.20MUTUALS INDUSTRY REVIEW 2022Other expenses,mainly consisting of administration costs,marketing and communication fees,and transaction and distribution costs,was the next major cost.This increased by 10 percent to$702.0 million(2021:$638.4 million).In addition,technology spen
125、d remained elevated at$271.4 million(2021:$273.6 million),reflecting the continued investment in technology and digitisation.Based on our survey,the largest contributors to technology spend in 2022 were projects related to cyber security,lending origination and open banking.Additionally,40 percent o
126、f survey respondents indicated that a quarter or more of their IT budget was allocated to technology enhancements and business transformation.Profits Profits before tax2(PBT)decreased by 11.6 percent(2021:37.9 percent increase)to$604.7 million(2021:$680.5 million),while the Majors saw profits increa
127、se by 8 percent(2021:54.7 percent increase).In 2021 PBT for the Mutuals increased significantly,driven by the release of provisions built up in prior years during the COVID-19 pandemic.In comparison,2022 saw a minor release of provisioning over the collective loan book.Instead,the increase in income
128、 from asset growth was offset by a declining NIM and elevated operating costs,reflecting the impacts of growing inflation and a tightening employment market.The Top 10 Mutuals saw PBT decrease by 19.2 percent(2021:31.1 percent increase)compared to the 5.6%growth for Mutuals outside of the Top 10.8,0
129、008,5009,0009,50010,00011,00010,500-200,000400,000600,000800,0001,000,0001,200,0001,400,000200212022($000)Total personnel costs in MutualsNumber of full time employees(FTE)PERSONNEL EXPENSES(2018-2022)FTE in MutualsDid you know?The three biggest opportunities identified by our survey for
130、the mutual sector to improve performance are:1.Technology and transformation of business 58 percent2.More collaboration with peers 15 percent3.Improving efficiency doing more with less 15 percent 2 2022 non-interest income was adjusted for a Mutual to exclude proceeds from a one-off transaction.2 20
131、22 non-interest income was adjusted for a Mutual to exclude proceeds from a one-off transaction.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.
132、All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.21MUTUALS INDUSTRY REVIEW 2022010,00020,00030,00040,00050,00060,00070,00080,000
133、GreatHeritageNewcastlePermanentPeoplesTeachersChoiceSouthernBank AusGreaterBeyondP&NIMB($000)TOP 10 TOTAL PROFIT BEFORE TAX(2018 2022)200212022-25.0%-15.0%-5.0%5.0%15.0%25.0%35.0%45.0%0100,000200,000300,000400,000500,000600,000700,000800,000200212022($000)PROFIT BEFORE TAX(2018
134、 2022)Top 10Mutuals excluding Top 10Growth in PBT4.2%-5.8%-16.3%37.9%-11.1%2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.T
135、he KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.22MUTUALS INDUSTRY REVIEW 20225.43%3.98%5.12%2.0%3.0%4.0%5.0%6.0%7.0%200212022RETURN ON E
136、QUITY(2018 2022)TotalMutuals excluding Top 10Top 10Return on equity(ROE)While not a key metric for the sector,total ROE2 increased by 80bps(2021:98bps)to 5.3 percent(2021:4.5 percent).The ROE of the Top 10 was weaker than the overall sector at 4.9 percent(2021:5.1 percent)with a fall of 20 bps as th
137、e Top 10 Mutuals experienced a significant fall in PBT by 14.4 percent in 2022.For the remainder of the sector,the ROE grew by 118 bps to 5.7 percent(2021:4.5 percent).2 2022 non-interest income was adjusted for a Mutual to exclude proceeds from a one-off transaction.2 2022 non-interest income was a
138、djusted for a Mutual to exclude proceeds from a one-off transaction.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG
139、 name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.23MUTUALS INDUSTRY REVIEW 2022KPMG insights on key topics24MUTUALS INDUSTRY REVIEW 20222022 KPMG,an Austral
140、ian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the
141、KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Sector snapshot71 percent of all lending by customer owned financial institutions is for residential owner-occupied property,and over 20 percent of all owner-occupied residential lending is provi
142、ded to first home buyers.11,200 people are employed by the sector across Australia,with$1.24b on wages and salaries.About 52%of customer owned bank staff work and live outside of metropolitan cities$220m in company tax was paid by customer owned financial institutions in 2021-22 on an estimated net
143、profit(before tax)of$765m in FY22,with an operating cost base just under$2.5b.of members use their customer owned bank as their primary financial institution.Customer owned banks spent more than$6 per member on charitable organisations and community sponsorships last financial year.Most customer own
144、ed banks saw emissions decline between 12-17 percent during 2021-22.The customer owned banking model generated members the equivalent of a 0.3 percent interest rate subsidy compared to a for-profit model.Of the 735 customer owned bank branches in Australia,27%are located in other major cities and re
145、gional areas.The Customer Owned Banking Association(COBA)is the industry advocate for Australias customer owned banking institutions.In June 2022,COBA asked KPMG to conduct an impact assessment of the sector on the community.Here are the summarised results.49 PERCENT6.1 Community impact assessment o
146、f customer owned banks Customer owned banking in AustraliaCustomer owned banking institutions collectively have more than$158 billion in assets,and around four million customers.Community impact assessmentIn June 2022,COBA asked KPMG to assess the impact of the customer owned banking sector on the A
147、ustralian economy.To do this,we first analysed a range of primary and secondary data to better understand the structure,conduct and performance of the industry.We then:surveyed COBA members across the areas of financial performance,employment,customers,environment,and community support combined this
148、 information with other data sourced from annual reports modelled a counter-factual scenario of what the Australian economy may look like in the absence of the community owned banking sector.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member f
149、irms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standa
150、rds Legislation.25MUTUALS INDUSTRY REVIEW 2022Economic analysisThe sectors direct GDP contribution was calculated by combining the sums of employee compensation(wages and salaries),gross operating surplus and mixed income(profits),and taxes less subsides.Result:The customer owned banking sectors eco
151、nomic contribution to Australian GDP in FY22 is estimated at$2.0b,or 0.09 percent of GDP.To assess the sectors broader footprint,we used KPMGs macroeconomic model to quantify the direct and indirect benefits the sector generates within the broader economy.We modelled a scenario where the customer ow
152、ned banking sector closes down overnight and the services it would have normally undertaken would be provided by other suppliers in the traditional for-profit financial services sector.Result:The footprint of the customer owned banking sector is much greater than its direct economic contribution.We
153、estimate a sudden,unplanned closure of the industry would result in Australian GDP being$5.7b smaller and result in 32,800 job losses.Further,the member-based operational structure of the sector facilitates around$500m of additional economic activity,creating 600 incremental jobs per annum compared
154、to an alternative operational model based purely on maximising shareholders return on equity.COBA and KPMG will publish the full assessment later during 2022.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Interna
155、tional Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.26MUTUALS INDUSTR
156、Y REVIEW 20226.2 Four winning strategies to compete for top talentPeter Outridge Partner,People and Change Carla Murray Director,People and Change As mutuals continue to play an integral role in the community,they compete with the major banks on different fronts.Mutuals have a unique value propositi
157、on,with an Australia-wide footprint and over half of their employees living and working outside metropolitan areas.However,they often lack scale to create specific and specialised roles and cannot compete on remuneration alone.Here,we look at four ways mutuals can optimise their natural advantage th
158、rough purpose,culture,the role of leaders and ways of working,when compared with their larger competitors.Strategy 1:Create a purpose-driven Employee Value Proposition(EVP)The challenge for post-pandemic EVPs is to be deliberate and considered,beyond pay and reward,to cover key areas now expected by
159、 employees such as purpose,culture,flexible working,and career development.Mutuals affinity with their local communities and member-driven purpose positions them strongly to build a differentiated and compelling EVP.Environment,social and governance(ESG)considerations can also be linked to further e
160、nhance their contribution to the community and their members,and therefore,to their employees.To do this,mutuals can consider the following questions:what are the risks and issues concerning the local community and members?how does the organisation play an active part in contributing to,alleviating,
161、or mitigating these issues?how do these activities link to their member-driven purpose?Mutuals can enhance the advantage of their purpose by:understanding deeply whats important to their employees and stakeholders and integrating these diverse perspectives into their EVP to further strengthen it and
162、 promote themselves as attractive municating visible and tangible examples of employee,customer,and community-centred stories to showcase their active participation in the community and how theyre bringing their purpose to life.Mutual banks are well-positioned to compete for quality talent by offeri
163、ng diverse and meaningful career opportunities.It is a dynamic and exciting time to be working in the sector.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited
164、by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.27MUTUALS INDUSTRY REVIEW 2022Strategy 2:Create an inclusive,diver
165、se and equitable culture that reflects their member baseThe competition for talent requires bold and courageous approaches based on calculated risks.One way is to reinvent the recruitment model and abandon the traditional safety net of looking for candidates who have done the same job in the same or
166、ganisation type.A fixed mindset limits access to quality talent that can increase diversity of thought and perspective and drive competitive advantage.For example,instead of searching for a Chief Customer Officer among other financial services organisations,focus on the capabilities required rather
167、than sector experience.Then,target talent with customer-centric thinking from other leading consumer industries to help drive innovation and potential benefits from external sector insights.Mutuals can also refresh their talent acquisition approach to align with their purpose by partnering more broa
168、dly with universities,TAFEs,and their member communities.This will help them increase awareness and create outreach programs to under-represented groups.Customer-facing frontline teams embody the brand and customer value proposition.In our view,this is an area that warrants over-investment.Redesigni
169、ng a contemporary people experience that aligns purpose to roles(see p9 P&C report 85%of frontline employees say they DO NOT live purpose in their day-to-day work)creates valuable learning and development opportunities and embeds visible and attainable career path options which attract the highest q
170、uality local talent.As regulation intensifies and stakeholder expectations increase around purpose and doing the right thing for customers and communities,the required capabilities of frontline team members can evolve from following processes and scripts to applying emotional intelligence and sensit
171、ive judgement.For example,the identification and treatment of vulnerable customers continues to challenge mutual banks and other institutions1.This can place further pressure on mutuals to attract high quality talent with advanced soft skills such as empathy and includes making sure there is appropr
172、iate diversity in their workforces to mirror the communities they serve.Mutuals can enhance their cultural advantage by:widening their access to talent by partnering with universities,TAFEs and member communities.integrating purpose into role design to increase employee engagement and member satisfa
173、ction.Strategy 3:Develop leaders who excel at member service and community value creationIn our view,the role of the future leader is one of service and driving value creation for the community in the digital age.Those who excel may be skilled in the ethical delivery of digital services and purpose-
174、led products,to meet increasing stakeholder expectations.Balancing digital fluency with deep empathy can drive enhanced engagement with members and employees.Mutuals can enhance their leadership advantage by:emphasising the service and value creation role of mutual leaders in the community.identifyi
175、ng opportunities to role model and lead change on a variety of societal issues,with a focus on those which are important to their members.Strategy 4:Challenge embedded ways of workingIts fair to say that organisations are still trying to make sense of their ways of working on the return to office de
176、bate.And,with over half of their workforce based outside metropolitan areas,mutuals are in a prime position to take the lead in redefining roles to demonstrate their agility,forward thinking and contemporary outlook.The key is to prioritise the core roles that have the greatest impact on member expe
177、rience(not necessarily the most senior roles).This approach requires deeper consideration to role design than many leaders may be familiar with.However,the potential benefits are worthwhile to attract the highest quality talent.Recent calls to reform the regulatory framework to increase competition
178、between mutual banks and the major banks2 are likely to result in a more level playing field.Mutual banks can gain the upper hand by recognising and acting on the ability to shift a smaller organisation to more agile ways of working and embedding a sharp focus on strategic priorities.1 1 Mutual bank
179、s told to sharpen their focus on vulnerable customers()Mutual banks told to sharpen their focus on vulnerable customers().2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English com
180、pany limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.28MUTUALS INDUSTRY REVIEW 2022Note:This does need a c
181、ultural shift and is as much about a laser focus on strategic priorities and embedding the right culture as it is about stand-ups and scrums.In our view,this involves cultivating improvement mindsets and a culture of trust and psychological safety.Process and digital transformation can be a catalyst
182、 for simplification,customer experience optimisation and an improved people experience.Seen through this lens,mutual banks should be able to continue to evolve their ways of working while retaining the simplicity and clarity thats so vital for adopting and embedding digital transformation.Mutuals ca
183、n enhance their ways of working advantage by:continuing to redefine roles to attract,develop and retain talent across a broader geographical spread,particularly for skill sets in high demand,such as risk and technology.embedding agile ways of working at scale and shifting mindsets and cultures to su
184、pport sustainable change.KPMG has identified access to talent as the top issue keeping CEOs up at night3.Mutual banks are well-positioned to acknowledge the unique place they hold as trusted brands in their communities to leverage the strategies outlined above to attract and retain great talent.2 Re
185、gulators must stop favouring big banks:mutuals().3 Issues facing Australias business leaders in 2022-KPMG Australia(home.kpmg).2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private Englis
186、h company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.29MUTUALS INDUSTRY REVIEW 2022Deborah Young Chie
187、f Executive Officer,The RegTech AssociationDeborah Young,CEO of The RegTech Association shares her insights into the growing sector and how mutuals can benefit from this key technology during times of tightening regulatory requirements and global change.6.3 Mutual gains through RegTech First coined
188、in 2015 by The Financial Conduct Authority in the UK as a subset of FinTech,the term RegTech has evolved and now refers to a range of technologies packaged into solutions that provide risk mitigation for regulated institutions and businesses of different shapes and sizes.As governments seek to reduc
189、e red tape,look for efficiencies and lower their costs,regulators are working hard to have a deeper understanding of the potential benefits of RegTech.In fact,government is emerging as one of the largest RegTech buying sectors outside financial services.The global RegTech spend in financial services
190、 is predicted to reach US$204 billion by 2026.Theres also increased capital flowing into the industry with a shift away from bootstrapped founders to more professional capital,which is a sign of confidence and growth despite challenging economic times.This growth is coming as organisations understan
191、d the breadth and depth of available solutions,regulatory pressure increases,and smarter ways of working are sought,particularly during times of crisis like the recent pandemic.Why RegTech for Mutuals?Keeping pace with regulatory change can be a challenge,and mutuals need the right tools to detect r
192、isks earlier,manage and monitor workflows,report and provide transparent information for decision-making.RegTech can bring productivity,efficiency and a layer of trust for the mutuals sector by equipping employees,leadership,boards and shareholders with transparent and timely risk-mitigating informa
193、tion.Put simply,RegTech offers very cost-effective ways to onboard a range of solutions at speed,to address different types of financial and non-financial risks via a Software as a System(SaaS)model.Mutuals may find RegTech attractive for these reasons,alongside being a mature industry and having ac
194、cess to software developers with deep subject matter knowledge,a willingness to trial and provide proof of concepts,and work with their clients to understand their needs.In a recent mutual bank webinar hosted by KPMG,a poll of those attending showed that 36 percent had already adopted RegTech soluti
195、ons or were actively considering them,while a further 45 percent were open to considering RegTech solutions.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited b
196、y guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.30MUTUALS INDUSTRY REVIEW 2022RegTech in AustraliaAustralia has the
197、 third largest RegTech sector globally,and were already seeing financial services regulators working on efficiency projects and system-wide architecture transformations.Australias three main regulatory agencies have run RegTech or supervisory technology(SupTech)1 projects to source more thorough and
198、 efficient interactions for the future.As the RegTech sector is highly mature here,we benefit from more readily available information and education,as well as the development of taxonomies to guide choices and align with leading solutions.Whats more,due to rapid growth over the past five years,the d
199、evelopment time of fully deployed RegTech solutions has reduced significantly,making Australia a world-renowned innovation hub.This provides mutuals with a box seat to not only choose from world-leading local solutions,but also cherrypick options from around the world.Making the right RegTech decisi
200、onAs interest in the potential benefits of RegTech increases,its important for mutuals to understand the range of solutions available before getting started.Research data shows a strong trend over the last few years towards buying ready-made solutions rather than building from scratch this is not su
201、rprising,with many good quality and accessible SaaS solutions easily available for a fraction of the cost.Understanding the range of available solutions Only five years ago,seeing the forest for the trees around RegTech was a significant challenge.There was no safe place for what we call the lounge
202、chair look and RegTech was mainly publicised at expos or via cold calling.We have revolutionised this approach by creating five-minute online programs focusing on different areas of risk,designed to help organisations better understand some of the leading solutions.These programs are not a sales pit
203、ch,just a way to show how the solutions address the problem and who the provider is working with.Its become so popular that since 2020,15,000 people from 85 countries have connected into our programs.To help with your decision-making,weve built an online risk-based taxonomy that includes financial a
204、nd non-financial risk,as well as the functional roles of potential solutions.We also include the type of technology and from which country the vendor is headquartered.This is free to access via our website directory.Get in touch when the time is rightBefore you get started,make sure youre crystal cl
205、ear about the problem statements youd like addressed as well as your legacy systems and cloud infrastructure.Also,its important to be aligned internally,particularly across areas like procurement,IT and IT security,legal,compliance,risk,governance,human resources data and transformation.We also reco
206、mmend getting strategic professional advice to help you make the right decision for your specific infrastructure,compliance and regulation requirements.Once youre aligned internally,our global taxonomy and online directory can help.Here,you can filter options based on your needs,create a shortlist a
207、nd then contact those you choose at your leisure.This is a free tool and just the starting point.You can also access our private in-house technology programs that can address your problem statements.We have run two such programs so far with financial institutions,which have resulted in commercial ar
208、rangements.Embracing RegTechMutuals need good tools to help their people identify risks earlier,manage and monitor workflows,report and provide transparent information for decision-making by executives and boards.KPMG can provide mutuals with support to prepare for and make sound choices for solving
209、 their problems,plus advise on resourcing requirements for new technology.Keep an eye on the emergence of aggregation solutions that capture different risk areas and offer monitoring and reporting through a single interface.Access to more efficiency,speed for producing reporting and data analytics w
210、ill provide you with more focus on striving for the highest quality,compliant solutions and products.1 SupTech is a term that refers to Supervisory Tech used by Regulators.It is sometimes used interchangeably with RegTech.SupTech is a term that refers to Supervisory Tech used by Regulators.It is som
211、etimes used interchangeably with RegTech.2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademar
212、ks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.31MUTUALS INDUSTRY REVIEW 2022Shruti HegdeDirector,Actuarial&Financial Risk Management Donald MacDonald Partner,Actuarial&Financial Ri
213、sk Management 6.4 Proactively managing climate riskThe mutual sector is facing a new requirement to incorporate climate-related risks into traditional risk management practices.This comes on top of the challenges already posed by increasing economic uncertainty,geopolitical dynamics and a fast-evolv
214、ing regulatory landscape.Here we look at how KPMGs Climetric tool can help mutuals face this head-on.Climate risk a complex conceptDespite the Australian Prudential Regulation Authority(APRA)declaring climate risk as“distinctly financial in nature”in 20171,it remains a complex concept.Indeed,the res
215、ults of APRAs climate risk self-assessment survey released in August 2022 show that it is still considered an emerging discipline when compared with other more traditional risk types and has yet to be fully embedded into risk management frameworks.This is because of its multidisciplinary nature and
216、a lack of relevant,readily available data to perform analysis.Traditional backward-looking risk assessments and existing risk models cannot anticipate the long-term and multifaceted form that climate-related risks may take.Nonetheless,the mutual sector has a two-fold responsibility.On the one hand,i
217、t needs to prepare itself for the negative effects of climate change on its business and customers only recently,we witnessed the catastrophic damage and impacts to communities and livelihoods due to flooding emergencies in the Eastern states.On the other hand,the sector can help mitigate economic r
218、isks and transition effectively into the low-carbon economy by proactively considering climate risk.With increased momentum in mergers and acquisitions across the mutual sector,climate risk due diligence forms an important consideration in consolidation activities because it directly impacts strateg
219、ic direction and long-term viability.As the global economy paves a decarbonisation agenda,not understanding and managing climate risk means losing competitive advantage and potentially failing.Getting startedA logical starting point in this journey is for mutual banks to understand their climate-rel
220、ated vulnerabilities and how climate risk may manifest within their portfolios.The larger banks have already commenced this work via the APRA-led Climate Vulnerability Assessment exercise2,and the mutual sector should follow suit.1 https:/www.apra.gov.au/news-and-publications/australias-new-horizon-
221、climate-change-challenges-and-prudential-risk2 https:/www.apra.gov.au/sites/default/files/2021-09/Climate%20Vulnerability%20Assessment_1.pdf2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a p
222、rivate English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.32MUTUALS INDUSTRY REVIEW 2022KPMGs
223、 Climetric tool aims to address this challenge.It performs portfolio-wide climate risk stress testing to quantify the impact of various physical and transitional risk scenarios on a portfolios credit quality and key financial metrics.Climetric uses internationally accepted climate scenarios,Australi
224、an climate and industry performance data and an adaptable methodology,which aligns with Prudential Practice Guide CPG 2293.Climetric covers two key dimensions that constitute climate risk:1.Calculating the impact of multiple transition pathways on a customers financial performance and credit risk.Th
225、e results are calibrated to account-and sector-specific outcomes,which can be aggregated into portfolio-level results.2.Quantifying the impact of multiple acute and chronic hazards under various temperature scenarios,based on granular geospatial coordinates of loan collateral.These hazards include c
226、yclones,floods,bushfires,heat and drought stress among others.Given the heavy skew towards residential mortgage lending within the mutual sector,understanding the impacts of physical risks,compared to transition risks,is particularly pertinent.In addition,the geographical concentration in mutual ban
227、ks lending books coupled with localised climate risks,point to an even greater need for sufficiently granular analysis,which Climetric can provide.Climetrics outputs can speed up a financial institutions integration of climate risk analysis into its risk management universe.This can reveal hidden vu
228、lnerabilities in portfolios and enable lenders to leverage opportunities associated with financing a green agenda.Climetric use casesClimetrics outcomes can be applied in a broad variety of ways,such as:enhancing credit risk policies and frameworks to capture the treatment of climate-sensitive secto
229、rs and debtors,collateral management,and limit setting incorporating climate risk factors into the credit approval and monitoring process,including early warning indicators updating risk appetite statements for climate-related risks based on reliable,trackable and decision-making metrics with associ
230、ated limits highlighting data collection gaps and uplifting the overarching data strategy to support climate risk management,modelling and reporting regulatory compliance for enterprise-wide stress testing,as well as reporting and disclosures.Managing climate risksClimate-related risks are pervasive
231、 and can impact aspects of the risk management universe.Business Strategy&Organisation Overarching Risk Management&FrameworkReporting&DisclosuresBusiness StrategyRisk AppetiteOrganisation Structure(3LoD)Operational Risk ManagementRisk ManagementFrameworkScenario Analysis&StressTestingCredit Risk Man
232、agementReportingLiquidity Risk ManagementMarket Risk ManagementDisclosure Policies&ProceduresExisting Risk Inventory ConsiderationsIntegration of climate risk into the risk management universe3 https:/www.apra.gov.au/sites/default/files/2021-11/Final%20Prudential%20Practice%20Guide%20CPG%20229%20Cli
233、mate%20Change%20Financial%20Risks.pdf2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks u
234、sed under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.33MUTUALS INDUSTRY REVIEW 2022The process of fully embedding climate risk into the risk management universe is protracted,complex and iter
235、ative.However,the mutual sector cannot afford to simply respond to regulatory impetus.There are tangible consequences for customers and many are already affected.Establishing a strong focus on managing climate risk will be key in maintaining the relationship-based,corporate citizenship-oriented busi
236、ness model many mutual banks already employ.Where theres a disproportionate balance between social responsibility and in-house capability,mutuals should look externally to consider how to implement their climate risk roadmaps.Tools such as KPMG Climetric can facilitate this by identifying the risks
237、and impacts of changing strategies.Over time,climate-risk analysis can enable the mutual sector to build financial products and strategies to support their communities and members,while mitigating the effects of climate change.2022 KPMG,an Australian partnership and a member firm of the KPMG global
238、organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a schem
239、e approved under Professional Standards Legislation.34MUTUALS INDUSTRY REVIEW 2022AppendixFinancial results:2022 survey participantsThe following table contains key financial data1 of the Mutuals included in our report.Company NamePeriod2,3Net Assets4$000Total Assets$000Total Deposits5$000Operating
240、Profit Before Tax6$000Capital Adequacy Ratio7%Return on Equity8%Cost to Income9%Australian Military Bank LimitedJun-22 102,870 1,605,318 1,418,305 2,539 17.4%2.0%91.8%Jun-21 99,935 1,506,043 1,321,422 4,801 17.5%3.4%89.2%Australian Mutual Bank LtdJun-22 186,723 1,778,057 1,547,105 6,482 21.1%3.0%80.
241、9%Jun-21 177,125 1,726,141 1,487,694 1,380 20.7%0.5%94.3%Bank of Us10Jun-22 86,594 1,361,685 1,047,282 6,919 15.5%6.2%76.7%Jun-21 81,422 1,239,668 994,843 8,246 14.4%7.9%71.5%Bank Australia LimitedJun-22 667,414 9,672,402 7,403,019 50,825 15.4%5.4%70.1%Jun-21 601,952 8,470,494 6,596,608 58,025 15.1%
242、7.0%63.8%Bank FirstJun-22 256,126 3,382,436 3,101,316 13,521 15.8%3.8%79.6%Jun-21 246,057 3,188,886 2,916,045 17,073 15.7%5.0%74.1%BankVic11Jun-22 217,953 2,827,715 2,499,989 16,617 17.0%5.5%73.3%Jun-21 206,341 2,664,070 2,340,369 15,627 17.2%5.3%71.4%Beyond Bank AustraliaJun-22 633,000 8,290,900 6,
243、552,200 49,400 16.3%5.8%72.3%Jun-21 582,200 7,755,100 5,977,300 46,600 16.4%5.8%72.6%Central Murray Credit UnionJun-22 7,485 113,514 104,500 441 14.9%4.7%84.8%Jun-21 7,130 101,946 93,587 168 14.6%2.1%93.3%Coastline Credit Union LtdJun-22 54,955 797,880 734,359 7,760 14.0%11.2%64.8%Jun-21 49,146 718,
244、085 658,175 6,589 14.0%10.6%66.7%Community First Credit UnionJun-22 104,521 1,287,524 1,131,002 2,980 15.2%2.7%89.1%Jun-21 98,375 1,227,994 1,078,894 2,521 14.8%2.1%90.3%Great Southern Bank12Jun-22 1,285,600 21,312,600 11,940,600 38,900 15.1%2.7%86.8%Jun-21 1,080,700 18,784,300 11,263,400 59,900 14.
245、6%4.2%79.5%Credit Union SA LtdJun-22 111,664 1,639,296 1,217,486 2,061 16.2%1.6%93.5%Jun-21 111,469 1,536,774 1,136,891 3,049 17.8%2.0%90.0%Defence Bank LimitedJun-22 219,558 3,206,505 2,524,637 23,605 15.7%7.9%66.5%Jun-21 202,903 3,022,808 2,330,830 19,933 16.0%7.1%69.6%Family First Credit Union Li
246、mitedJun-22 14,676 215,688 190,428 1,239 15.6%7.8%78.6%Family First Credit Union LimitedJun-21 13,577 203,995 181,904 868 14.6%4.9%82.8%G&C Mutual Bank LimitedJun-22 129,264 1,532,555 1,322,092 9,012 16.6%5.3%67.9%Jun-21 122,546 1,298,340 1,093,498 8,030 17.3%5.0%72.7%Gateway Bank LtdJun-22 116,148
247、1,381,190 1,056,574 5,220 16.1%3.4%76.6%Jun-21 112,201 1,083,255 804,029 6,392 19.9%4.3%71.1%2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All
248、 rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.35MUTUALS INDUSTRY REVIEW 2022Company NamePeriod2,3Net Assets4$000Total Assets$000
249、Total Deposits5$000Operating Profit Before Tax6$000Capital Adequacy Ratio7%Return on Equity8%Cost to Income9%Geelong Bank13Jun-22 13,574 205,780 191,157 1,045 16.0%8.2%73.9%Jun-21 11,823 185,794 169,717 574 14.9%3.8%83.1%Goulburn Murray Credit UnionJun-22 54,335 535,654 476,663 2,961 20.6%4.9%39.7%J
250、un-21 50,418 525,160 469,256 1,906 20.0%2.8%36.7%Greater Bank LimitedJun-22 574,976 8,386,542 7,474,794 9,089 16.1%1.0%95.5%Jun-21 600,167 8,072,987 7,020,415 32,735 17.6%3.9%82.1%Heritage Bank LtdJun-22 748,158 12,324,105 9,970,554 58,027 14.6%5.8%78.1%Jun-21 656,617 11,943,038 9,578,354 64,396 14.
251、3%7.1%73.5%Horizon Credit Union LtdJun-22 42,237 646,285 589,828 3,566 14.9%6.9%75.3%Jun-21 38,067 585,507 535,355 1,271 15.2%3.0%90.5%Hume Bank LimitedJun-22 89,551 1,618,442 1,487,429 6,372 16.0%5.5%81.7%Jun-21 95,920 1,497,688 1,390,062 6,132 13.9%5.0%81.0%Illawarra Credit Union14Jun-22 47,848 1,
252、055,525 903,538 2,752 13.7%7.6%83.8%Jun-21 51,649 762,945 702,187 2,509 14.3%4.0%84.2%IMB LimitedJun-22 439,529 7,076,295 6,065,549 41,957 14.8%6.7%73.4%Jun-21 437,246 6,964,875 5,858,054 44,217 17.4%7.2%71.8%Macarthur Credit Union LtdJun-22 25,604 370,154 341,282 679 15.0%2.3%90.6%Jun-21 26,271 317
253、,332 289,687-359 16.4%-0.9%106.8%MOVE Bank15Jun-22 68,647 682,488 585,197 1,937 21.7%2.3%86.7%Jun-21 70,044 714,430 618,930 2,049 20.2%2.3%85.1%The Mutual Bank16Jun-22 56,616 1,010,687 847,545 6,432 14.5%8.2%72.3%Jun-21 61,436 902,522 756,724 4,822 14.4%6.4%76.3%Newcastle Permanent Building Society
254、LtdJun-22 1,062,275 12,147,646 9,579,677 46,815 20.5%2.9%80.3%Jun-21 1,110,677 11,703,681 9,141,950 59,971 20.7%4.1%73.7%Northern Inland Credit Union LtdJun-22 41,850 429,539 375,946 1,271 17.1%2.4%87.8%Jun-21 42,791 396,617 344,193 1,612 17.6%2.9%86.7%Orange Credit Union LtdJun-22 27,285 294,624 26
255、5,495 178 19.4%0.8%96.2%Jun-21 27,510 264,712 235,227 275 20.9%0.8%95.8%P&N BankJun-22 461,263 7,349,119 5,747,374 23,173 16.0%3.2%84.9%Jun-21 560,342 6,928,372 5,472,468 23,952 14.1%3.7%88.7%Peoples Choice Credit Union17Jun-22 662,352 10,446,786 7,668,050 11,318 14.9%1.4%96.2%Jun-21 684,906 9,674,7
256、49 7,118,480 29,740 13.7%3.2%88.2%Police Bank LtdJun-22 210,400 2,462,600 2,107,200 6,400 18.6%2.0%88.2%Jun-21 214,300 2,270,600 1,885,200 6,300 19.2%2.0%87.9%Police Credit Union LimitedJun-22 95,678 1,190,170 1,026,133 8,726 15.5%6.5%76.4%Jun-21 105,866 1,207,612 1,051,381 8,886 14.5%7.1%71.5%QBANK
257、18Jun-22 85,370 967,484 810,085 2,732 19.9%2.5%87.8%Jun-21 87,906 934,913 768,586 2,950 20.1%2.7%86.2%2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guar
258、antee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.36MUTUALS INDUSTRY REVIEW 2022Company NamePeriod2,3Net Assets4$000Total A
259、ssets$000Total Deposits5$000Operating Profit Before Tax6$000Capital Adequacy Ratio7%Return on Equity8%Cost to Income9%QudosJun-22 301,305 5,190,581 4,668,428 22,479 15.0%5.1%70.9%Jun-21 320,230 5,006,216 4,459,490 20,820 14.7%5.0%70.9%Queensland Country Credit UnionJun-22 188,499 3,241,607 2,531,816
260、 14,881 15.3%5.9%85.0%Jun-21 200,481 3,031,494 2,351,584 10,238 15.3%3.9%88.9%RACQ Bank19Jun-22 193,204 2,613,136 2,198,049 3,005 15.9%1.2%97.1%Jun-21 195,637 2,554,860 2,137,653 10,725 15.8%4.2%82.3%Regional Aus.Jun-22 189,873 3,149,585 2,699,099 24,574 15.3%8.7%66.7%Jun-21 206,859 2,823,107 2,394,
261、363 22,429 14.8%8.9%67.3%South West Slopes Credit UnionJun-22 23,000 259,096 231,223 859 18.3%2.8%88.5%Jun-21 23,712 223,900 196,727 708 20.5%2.5%89.0%Southern Cross Credit UnionJun-22 61,683 817,759 720,968 4,559 16.1%5.5%72.4%Jun-21 65,317 688,369 594,943 3,663 17.5%4.5%77.9%Summerland Credit Unio
262、nJun-22 68,936 1,030,918 943,735 3,974 14.8%4.2%83.9%Jun-21 73,356 933,015 828,352 6,405 15.3%7.3%74.5%TeachersJun-22 612,530 10,442,335 8,597,528 42,346 14.7%4.7%76.1%Jun-21 674,127 9,758,274 8,129,612 40,394 14.1%4.7%76.8%The CapricornianJun-22 28,403 400,555 360,227 1,110 15.0%3.0%90.6%Jun-21 26,
263、729 409,694 366,897 2,030 14.5%6.4%79.5%Traditional Credit UnionJun-22 5,803 21,923 12,944 2,516 0.0%27.8%71.7%Jun-21 7,679 18,865 12,161 516 0.0%6.8%90.6%Unity BankJun-22 119,808 1,587,202 1,251,230 9,193 15.3%5.9%77.3%Jun-21 127,623 1,508,908 1,188,317 7,598 15.2%4.6%78.3%Warwick Credit UnionJun-2
264、2 27,789 404,127 373,040 2,220 0.0%5.8%77.9%Jun-21 29,126 387,264 357,571 1,794 14.4%4.8%80.5%For the complete datasheet compiled by KPMG,please visit our website.Endnotes1.Information has been extracted from published annual reports(at a consolidated level where applicable).Parent numbers have been
265、 used in limited cases where they are a better reflection of results.In limited cases,KPMG has adjusted a number of balances to reflect a significant one-off event.2.All figures for the current and prior year are reported under AIFRS and in Australian dollars.3.All of the results in the report were
266、for a 12-month period.4.Net assets include other equity interests.5.Total Deposits is taken from the balance sheet and includes all deposits,such as retail,non-retail and other deposits.6.Operating profit before tax is before outside equity interests.7.Capital adequacy ratio has been calculated unde
267、r the APRAs risk based measures.8.Return on equity has been calculated as profit after tax as a percentage of average net assets.9.Cost-to-income ratio has been calculated as operating expenses as a percentage of operating income.10.B&E LTD.trading as Bank of Us.11.Registered name is Police Financia
268、l Services Limited.12.Credit Union Australia Limited trading as Great Southern Bank.13.Ford Co-operative Credit Society Ltd.trading as Geelong Bank.14.Community Alliance Credit Union Limited trading as Illawarra Credit Union.15.Railway Credit Union Ltd trading as MOVE Bank.16.Maitland Mutual Limited
269、 trading as The Mutual Bank.17.Australian Central Credit Union Ltd.trading as Peoples Choice Credit Union.18.QPCU Limited trading as QBANK.19.Members Banking Group Limited trading as RACQ Bank2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member
270、firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Stand
271、ards Legislation.37MUTUALS INDUSTRY REVIEW 2022Acknowledgements Peter OutridgePartner,People and C.au Carla MurrayDirector,People and C.au Shruti HegdeDirector,Actuarial&Financial R.auDr Brendan RynnePartner,Chief E.auDeborah YoungChief Executive OfficerThe RegTech Associationregtech.org.auDonald Ma
272、cDonaldPartner,Actuarial&Financial Risk M.auArticle authors:Report contributors:Adrian DAlfonsoLindy JonesSteven ChoiYash KhandareBen PollackClaudia GonzalezJake Muysken2022 KPMG,an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with K
273、PMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.38MUTU
274、ALS INDUSTRY REVIEW 2022KPMG.com.auThe information contained in this document is of a general nature and is not intended to address the objectives,financial situation or needs of any particular individual or entity.It is provided for information purposes only and does not constitute,nor should it be
275、 regarded in any manner whatsoever,as advice and is not intended to influence a person in making a decision,including,if applicable,in relation to any financial product or an interest in a financial product.Although we endeavour to provide accurate and timely information,there can be no guarantee th
276、at such information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.To the extent permissible by law,KPMG and its ass
277、ociated entities shall not be liable for any errors,omissions,defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information(including for reasons of negligence,negligent misstatement or otherwise).2022 KPMG,an Australian partnershi
278、p and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global or
279、ganisation.Liability limited by a scheme approved under Professional Standards Legislation.NOVEMBER 2022 951205866FSContact usRichard Drinnan NSW Mutuals Leader T:+61 2 4231 7982 E:.auSteve Jackson National Sector Leader,Banking T:+61 2 9458 1540 E:.auHeather Hicks TAS Mutuals Leader T:+61 3 6230 4077 E:.auCarmel Mortell VIC Mutuals Leader T:+61 3 9288 5845 E:.auauKevin Smout WA Mutuals Leader T:+61 8 9263 7105 E:.auJillian Richards QLD Mutuals Leader T:+61 7 3233 3108 E:.auDarren Ball National Mutuals Leader T:+61 8 8236 3197 E:.au