Fremantle Community Financial Services : 2023 Annual Report

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Fremantle Community Financial Services Limited

Fremantle Community Financial Services Limited

Chair's Report

For year ending 30 June 2023

What a difference a year makes.

In October we moved to new premises in Parry St under the Victorian Pavilion at Fremantle Community Bank Oval. This small footprint Branch has enabled our lending team to provide a faster and more mobile service resulting in a better experience for our customers. Our Branch Manager can now meet you at a location of your choice. The Branch still provides that individual, specialised and attentive service but increasingly we are using online services to do our banking as we rapidly move away from cash transactions.

Our profit has returned and our commitment to support our regular partners such as South Fremantle Football Club, St Patrick's Long Table and Fremantle Rotary's Give a Can, Give a Damn has continued.

With our focus on moving the Branch to the new premises our usual Director recruitment and increasing our community partnerships was put on hold whilst we settled into the new Branch and monitored developments in the banking environment. With our reserves replenished we are set to increase our community contributions and recruit some new Directors.

I am blessed to work with a group of Directors, who willing give up their time and expertise to promote and support our social enterprise and unique point of difference. By banking with a Community Bank not only are you part of one of the biggest social enterprise movements in the world, you also know that profits made by the enterprise are invested back into the Fremantle region. A huge thankyou to the Directors, it is a pleasure to work with such a dedicated group of people.

Thank you to Peter Cirillo, our Branch Manager and the wonderful Fremantle team that he leads. The service they provide is outstanding.

Thank you also to our banking partner Bendigo Bank and the WA State Office personnel for your support and encouragement.

Thank you to our shareholders who support this unique endeavour and to our customers who reap the benefits of a local team and an attentive and responsive Branch Manager.

We continue to be very excited about our future.

Debra Rule

Chair

Fremantle Community Financial Services Limited

Branch Manager's Report

The 2023 financial year has been a challenging year for most small businesses. The competitive landscape in the financial services industry, fuelled by succession of Reserve Bank of Australia rate increases has resulted in continued market pressure. Given ten consecutive rate increases our margins have seen an upward trends, affecting both lending and deposit rates.

While the focus is on being able to source and write more business, ensuring existing customers are looked after is a priority. As interest rates continue to head upwards, a review of existing customers Banking facilities is being performed to meet competitors to avoid any potential run-off.

As of 30th June 2023, we have a full complement of 6 staff, comprising of myself as Branch Manager, Home Lending Specialist, Branch Operations Manager and three Customer Service Officers. We continue to plan and improve to ensure our customers financial needs and goals are being met as well as strive for a larger share of the home loan and at call/term deposit market. The board have and continue to support this plan.

While there are still many challenges ahead, the potential for Fremantle and surrounding areas is endless. Within the 2022/2023 financial year has seen some positive results in our portfolio as follows:

• Lending - Book Value of $34,338,405 (down from $35,283,402 in previous year)
• Deposits - Book Value of $91,088,939 (up from $73,995,369 in previous year)
• Other Business - Book Value of $25,997,165 (down from $26,633,856 in previous year)
• Total Business - Book Value of $152,074861 (up from $136,543,768 of total funds under management in previous year).

The year ahead will see our focus continue towards growth in our retail banking lending portfolio as well as focusing on reconnecting Business Banking division.

It is also important to note that as our customers and shareholders, you are our strongest advocates to let people know about the great things that we can achieve together.

My thanks to the Board of Directors for all their support and the continued confidence and trust they have placed in me and my staff to deliver positive results for us all.

Peter Cirillo

Branch Manager

ANNUAL REPORT | Fremantle Community Financial Services Ltd

Community Bank Report 2023

BEN Message

August 2023

Community and customer will always be at the heart of what we do at Bendigo and Adelaide Bank.

Together, we're seng up Community Banking for the future - growing our impact as a leading social impact movement to transform communies across Australia.

As we connue to evolve to meet the needs of our customers, we should feel proud that more Australians are choosing to do their banking with us and trust us with their financial goals. Our posion as Australia's most trusted bank (Roy Morgan) reflects the esteem we are held in by our customers, and communies.

This year has been parcularly significant for us. Aer five years apart, we had the opportunity to come together in person and connect through our State Connect program and in Bendigo at our Naonal Conference in September. It has also been a record-breaking year for Community Bank with more than $32 million invested into local communies naonwide. This is our highest year on record and underscores our ongoing commitment to our customers and communies.

Reflecng on the 25 years since we opened our first Community Bank, I'm so grateful to the hard work of many passionate Directors (past and present). Everything we have done and connue to do is focused on our purpose to feed into the prosperity of our customers and communies, not off it.

On behalf of the Bank, thank you for connuing to play an essenal role in supporng your community. I look forward to seeing us grow together and make a posive impact for generaons to come.

Warmest regards,

Justine Minne

Bendigo and Adelaide Bank