Mecu Delivers Full Rba 75 Basis Point Cut On Home Loans

mecu Delivers Full RBA 75 Basis Point Cut on Home Loans

mecu has passed on the full 75bps reduction to all new home loans as from today. Our decision means a total cut of 155bps in interest rate will be passed on to all new and existing borrowers by 1 December.

Stronger balance sheet than the banks
"One reason that mecu is able to deliver such a competitive rate is because of our conservative balance sheet and high capital-adequacy ratio." said Chief Executive Officer Phylip Doughty.

mecu currently has a capital adequacy ratio of 19.97%, almost double the average
bank capital of ~10.2%.(1)

mecu are continuing to experience strong inflows of deposits, which were strong
prior to the introduction of the deposit guarantee and are now accelerating.
Deposit rates have been cut today but still remain above the major four banks.
Deposits as of today $1.54billion.

As a result of this extraordinarily strong balance sheet, mecu is not forced to rely on the volatile wholesale debt funding market. mecu currently has absolutely no wholesale funding.

Internationally recognised strength
In 2008 mecu became the first credit union in Australia to be issued an investment grade credit rating by international rating agency Standard & Poors.

Continued Strong Performance
For the 07-08 Financial Year, mecu achieved an after tax profit of $17.55m, up
5.8%.

Further information:
mecu - Rowan Dowland
03 98544644 or Mobile: 0418 508718

mecu - Zoe Gaylard
03 9854 4663 or visit: www.mecu.com.au

(1) APRA Insight, Edition 2 2008,
http://www.apra.gov.au/Insight/upload/Insight_Issue_2_2008.pdf

SOURCE: mecu