Following on from two disruptive years in 2020 and 2021, the 2022 financial year again saw significant events 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).

Despite these headwinds, the Mutuals continue to be a constant support for their members. To remain strong contributors to their communities, they don’t stop evolving with the world around them. A proactive and responsive Mutual sector will deliver an impactful and progressive future for their members and communities.



Financial highlights: Australian mutuals in numbers

▼ 11.1%

Operating profit before tax
decreased by 11.1% to $604.7 million

(2021: $680.5m)


▲ 8.1%

Lending grew by 8.1%
to $120.9 billion

(2021: $111.9b)


▲ 7.0%

Deposits grew by
7.0% to $124.9 billion

(2021: $116.7b)



▲ 2.4%

Non-interest income increased
by 2.4% to $430.7m.1

(2021: $420.6m)


▼ 6bps

Net interest margin decreased
6bps to 1.93%

(2021: 1.99%)


▲ 48bps

Cost to income ratio increased by
48bps to 80.3%

(2021: 79.9%)



▼ 6bps

Average capital adequacy ratio
decreased by 6bps to 16.29%

(2021: 16.35%)


▼ $19.5m

Write back of credit provisions
of $19.5m

(2021: Write back of provisions of $34.9m)


► 2

2 mergers completed

(2021: 2)



1 2022 non-interest income was adjusted for a Mutual to exclude proceeds from a one-off transaction.


Survey responses: Australian mutuals insights


75% of respondents feel confident about the 3 year growth prospects for mutuals.

Top 3 priorities for the next 3 years are: maintaining profitable and sustainable growth, digital transformation and acquisition or merger. 

Top 3 biggest risks are: information technology including cyber risk, attracting and retaining talent, and compliance & regulations.

Top 3 key technology challenges in the next 3 years are: cyber security, legacy systems and cost reduction & channel digitisation. 

25.5% of respondents anticipate being involved in merger activity during 2023.

Over 50.0% of respondents place high importance on ESG, which is regarded as a way to differentiate themselves (up from 26.8% in 2021); while 30.8% of respondents believe this is an important area for their organisations, but they are not looking to go above and beyond (down from over 70% in 2021). 

Top 3 contributors for growth are: product pricing, better customer service and customer centricity & product innovation.


KPMG insights: Key themes for the Australian mutuals sector

Download our short point-of-view articles covering key themes from our report below.


Customer owned banking sector

The Customer Owned Banking Association (COBA) is the industry advocate for Australia's 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.

Download the PDF >

Attracting talent

Mutual banks are well-positioned to compete for quality talent by offering diverse and meaningful career opportunities. It is a dynamic and exciting time to be working in the sector.

Download the PDF  >

RegTech benefits

Deborah 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.

Download the PDF >

Climate risk

The 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-evolving regulatory landscape.


Download the PDF  >




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