- S&P has upgraded its credit rating to BBB+|Stable|A-2 from BBB|Positive|A-2.
- Moody’s affirms Defence Bank rating of Baa1 and maintained its stable outlook.
- Moody’s noted Defence Bank’s strong asset quality, low-cost base and robust capital position.
- A strong outlook is projected due to cost management.
- Defence Bank is the only bank serving Australia’s Defence community with dual ratings.
- Third party endorsement shows Defence Bank’s member focused, proprietary strategy is a strength.
Defence Bank today positioned itself further as Australia’s leading bank for the Defence community with not one but two ratings agencies affirming their confidence in Defence Bank’s consistent performance, profitability and purpose.
In the last week, both Moody’s and S&P have delivered their tick of approval for the strategic, sustainable and successful trajectory Defence Bank continues to follow.
Moody’s has affirmed its rating of Baa1|Stable|P-2 recognising Defence Bank’s strong asset quality, profit above its peers, low-cost base and robust capital position.
S&P upgraded its credit rating to BBB+|Stable|A-2 from BBB|Positive|A-2.
Acting Defence Bank Chief Executive Marnie Fletcher today welcomed this independent endorsement.
“We are not only growing but doing so sustainably and well ahead of many of our peers.
“We are passionate about leading the way for Australia’s Defence community and this external validation shows we are on the path of sustainable and purposeful growth with prudent management of member funds.
“As Moody’s notes, we have a very strong relationship with the ADF community.
“We have a proud track record of working with the community we serve to help secure home ownership and this is borne out through our participation in the Defence Home Ownership Assistance Scheme and other measures. Our loan book is low risk yet high on delivering for members in unique circumstances, many of whom have multiple postings and may not have the traditional lived experience when first applying for a home loan.
“We deliberately choose to focus developing our proprietary lending business which creates an intimate understanding of members to deliver a banking relationship that supports the life like no other that our members have in the ADF. This strategy comes with high member advocacy with a current Net Promoter Score (NPS) of +48.
“We are keeping a keen eye on our costs and are pleased that Moody’s notes we outperform our peers on costs and profitability in an inflationary and higher interest rate environment.
“It is our task, looking ahead, to continue to understand the unique life of the men and women of the ADF and deliver an experience that meets their needs.
“We will do this through continuous improvement, via people-led and patient investment in technology that makes everyday banking easier.
“As we approach our 50th year of operation we are delighted by this endorsement from the ratings agencies and will continue to get on with the business of being the best bank in Australia for the men and women of the Australian Defence community.”
