The Year in Review

MUTUAL SUCCESS Your Success is our Success Contents

Financial Highlights 2

Key Initiatives & Achievements 3

Chairman’s Report 4

CEO’s Report 6

Corporate Governance 8

CUA & Communities 10

CUA Board 12

Executive Committee 14

In memory of Jack Harvey 16

mutual SUCCESS

your success is our success Financial Highlights Key Initiatives & Achievements

DEPOSITS CONSOLIDATED ASSETS MEMBER DEPOSITS (BILLION $) CONSOLODATED ASSETS (BILLION $) Deposits increased by 14.6% to $7.78 billion Consolidated assets increased by 16.3% to $11.99 billion

2015 7.78 2015 11.99

Home Loan 2015 2014 6.78 2014 10.31

2013 6.55 2013 9.96 AWARDS

2012 6.27 2012 9.44 Australian Banking and Finance Awards 2015: Money Magazine Consumer Finance Awards 2015: ‘Australian Financial Institution of the Year - Non Big ‘ of the Year’ 2011 6.05 2011 9.02 Four’ and ‘Mutual of the Year’

Mozo Experts Choice 2015: ‘Best Value Full Feature CANSTAR Awards 2015: CANSTAR five star rating for 0 1 2 3 4 5 6 7 8 0 2 4 6 8 10 12 Home Loan’ and ‘Best Value Variable Home Loan’ for outstanding value for CUA Fresh Start Variable Home (billion $) (billion $) CUA Fresh Start Variable Home Loan Loan, CUA eSaver Plus, CUA Youth eSaver

MEMBER NUMBER LOANS SETTLED (BILLION $)  Australian Lending Awards 2015: CUSTOMER NUMBERS UNDERLYING NET PROFIT AFTER TAX ‘Best Non-’ and ‘Best Mutual’ UNDERLYING NET PROFIT AFTER TAX (MILLION $) MEMBER NUMBERCustomer numbers increased by 2.0% to 431,778 Underlying net profit after tax decreased by 1.4% to $48.79 million

2015 431,778 2015 48.79

2014 423,102 2014 49.50

2013 420,637 2013 51.92

2012 421,851 2012 48.14 • Record home loans issued, balancing strong growth • Rated A3/P-2 by Moody’s, the highest rating available 2011 416,899 2011 46.23 while significantly reducing the Loan to Value Ratio to a mutual

• Removing the CUA membership payment, modernising • CUA Health continued its growth trend with sales of 225 300 375 450 0 10 20 30 40 50 60 the Constitution and opening opportunities for $24.1 million and policy holder growth of 14.1 per cent, (hundred thousand) (million $) future growth making it the fourth fastest growing health fund in CONSOLODATED ASSETS (BILLION $) • Implementation of a simpler and faster personal loan application system • Allianz Australia chosen as General partner LOANS SETTLED CAPITAL ADEQUACY from 1 December 2014 LOANS SETTLED (BILLION $) Loans settled increased by 54.9% to $3.35 billion CAPITAL ADEQUACYCapital (%)adequacy reduced to 14.40% • Responding to customer feedback by continually enhancing during the year • 2014 Employer of Choice for Gender Equality (one of 76 employers nationally) 2015 3.35 2015 14.40 • Continued investment in Life rich banking branding throughout the network, with 10 branches • CUA Community Care delivered $75,000 in prizes to 2014 2.17 2014 15.29 given a brand refit school projects, with winners determined by community voting 2013 1.86 2013 14.95 • First financial institution in Australia to launch a mobile payment app for Android phones – CUA redi2PAY • Disaster relief packages made available to customers affected by cyclones Marcia and Lam 2012 1.52 2012 14.71

2011 1.87 2011 13.33

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 0 4 8 12 16 (billion $) (percentage %)

CAPITAL ADEQUACY (%)

2 MUTUAL SUCCESS 3 Chairman’s Report

slowdown in the national housing market, possibly The Board also demonstrated its commitment to excepting . innovation in CUA by reflecting this theme in the renamed Strategy and Innovation Committee. To summarise, CUA continues to quietly but firmly build its positioning as a competitor in . Recently becoming a $12 billion company, CUA is also LOOKING FORWARD maintaining its loan book growth at the expense of competitors. Additionally, at a time of considerable I am conscious, as the year ends, that forecasting is even publicity of regulatory pressures on the major to more difficult than usual due to world events outside raise additional capital, CUA’s capital adequacy ratio sits our control but which may have an impact on economic at a comfortable 14.40%. conditions in Australia, including the housing market. The Eurozone’s difficulties involving Greece and the fall in the In the context of reviewing the year it would be remiss Chinese equities market are impacting our sharemarket of me not to mention that CUA proudly continued its with no firm conclusion yet in sight. Nevertheless, even investment of considerable funding into community focus with these head winds, the Board considers CUA to be areas we know to be important to our customers and well placed to continue its steady growth of recent years. staff. This year the investment was directed into support for family health issues, schools and childhood health. The maturing of CUA’s customer focus will see further This investment is outlined in more detail in the ‘CUA & refinement of our award-winning product suite in line Communities’ section of this report. with a changing competitive environment. A first truly CUA credit card will be delivered in 2016 as part of this process. Until now all credit cards have featured third MODERN MUTUAL party providers. This is a significant development for CUA and indicative of its progress. Pricing across the The Board was pleased to see the overwhelming support product suite will continue to reflect our need to balance of our members at the 2014 Extraordinary General CUA’s continuing sustainability with our commitment to Meeting (EGM) for our proposals for modernising CUA’s providing our customers with value for money. We would Constitution. CUA is seeking to become a more relevant and sustainable financial service provider and having members endorse the Board’s strategy was vital. To “CUA continues to quietly but ALAN BEANLAND reiterate my advice at the EGM, by ‘modern mutual’ I mean that your company would be owned by its active firmly build its positioning members and freed to compete for business in the digital age, including having access to competitive funding as a competitor in financial sources in order to grow. The specific changes endorsed represent incremental competitive steps which lay the services.” It is always a pleasure to contribute to CUA’s Annual financial services sector. Rob has already had an impact foundations for CUA to continue its growth but in no way Report which is the premier conversation we have with on CUA, and the Board looks forward to working closely weaken your Board’s commitment to maintain CUA as a expect that our increased focus on the customer will members each year. The theme for this year, ‘Mutual with Rob as CUA continues its journey. mutual. lead to increased retention, always a significant concern Success’, is not directed at highlighting our successes in financial services. This was bolstered by a dedicated but rather that we view our achievements as a mutual, I am pleased that a significant number of members have team in CUA demonstrating that we do go the extra as worthy only to the extent that they enrich the lives of THE YEAR IN REVIEW already had their membership payment reimbursed, mile to meet customer expectations. Experience with our customers. Our growth benefits members. with many also donating the pay-out to CUA’s premier our straight-through personal loan approval process The financial results for FY15 certainly support the charitable partner, SIDS and Kids. reinforces that an online home loan application process is In the conclusion to my report last year I mentioned Board’s contention that CUA is in a relatively strong critical and we expect this to also be introduced in FY16. that, going forward, there would be a focus on space. Significant uplifts in consolidated assets (up 16.3% competitiveness and that CUA undertook to be to $11.99 billion), loans settled (up 54.9% to $3.35 billion) GOVERNANCE I have previously commented that to be static in financial even more responsive to the needs of its customers and deposits (up 14.6% to $7.78 billion) are indicative of services is, effectively, to fall behind. The Board has no by embracing new channels of distribution and a a financial institution which is having a market impact. CUA’s Board is elected by and is accountable to our intention of letting CUA fall behind. CUA’s customer- continuing commitment to innovation. I believe that the The small fall in Underlying Net Profit After Tax (1.4%) to members. It is responsible for the overall governance led strategy, including a focus on the segment with a ‘Key Initiatives & Achievements’ section of this report $48.79 million reflects the continuing depreciation of the and strategic direction of our business. Our Board natural affinity to mutuals, and an organisational-wide demonstrates that we have delivered on these themes – investment in the core banking system, the squeeze on comprises directors with a diverse range of backgrounds commitment to innovation should ensure a further set of product and corporate awards validate how we deliver margins from record low interest rates and the necessity and appropriate governance and financial skills. I have highlights in next year’s Annual Report. Achieving this value to customers, and our technological innovations for continuing keen pricing on home loans. consistently mentioned that your Board continually each year will secure CUA’s future. directly impact our competitiveness as well as address adapts to a rapidly changing environment in financial the changing access requirements of customers. CUA’s home loan performance has been a stand-out, services by seeking a balance between Board terms Finally, I would like to record my appreciation of the with award winning products backed by an impressive and the need for new skills. In line with this, a long efforts during the year of your Board, of the management This year’s report is the first to include a contribution sales performance, through both organic and broker serving director, Peter Dowling, left the Board during team and of all staff. from our new CEO, Rob Goudswaard. Rob has taken the channels. The end result has been a growth rate of the year. Peter’s enthusiasm for the mutual industry and reins at a crucial time for CUA, when the technological 2.45 times the market average. It may be difficult to knowledge of financial services will be greatly missed. revolution in banking is fundamentally altering the maintain this growth into FY16 given the anticipated

4 MUTUAL SUCCESS 5 CEO’s Report

The other result I particularly wish to emphasise is the very significant growth of CUA Health which now sees REGULATORY ENVIRONMENT it positioned to be a competitive force in this important segment of the insurance market. After transitioning to Although a complex area the regulatory environment a ‘for profit’ health fund in FY15, CUA Health was the defines how and what changes to CUA’s prudential fourth fastest growing private health insurance fund operating regime are being made or anticipated by the during the year with over 9000 new customers. It grew government or our regulators. at a rate of 6.5 times the industry average, powered by a 43% increase in sales. Apart from a competitive, There has been much publicity around the Murray Financial System Inquiry’s (FSI) recommendations and the still awaited responses from the Government and APRA. “CUA’s investment in Recommendations that the major banks be required to hold more capital in relation both to their total operations digital capability has been and specifically for the risk weights they apply to home loans will assist the mutual sector by making this critical significant and will remain capital area more competitively neutral. While these changes will not make CUA’s capital go further, they will high for the foreseeable reduce particular disadvantages, predominantly affecting risk weighting. A related move by the Government to future.” confirm a tax on deposits has also attracted a great deal of opposition from the mutual sector. We are hopeful that simple product suite and attractive pricing, particular the Government will acknowledge the negative impact on selling points have been the third largest private health competition of such a tax and respond accordingly. insurance fund by branch network, complemented by a digital customer contact and service strategy and a newly CUA has participated vigorously in the dialogue regarding launched mobile claims app. the FSI and will continue to do so as the Government’s response becomes clearer. This advocacy applies to other While the mutual model and its community focus brings issues surrounding CUA’s business and it is my intention a strong emphasis on the customer, this alone will not to use every opportunity to carry CUA’s message, and ensure the success or survival of the mutual sector. that of the wider mutual sector, to government, regulators ROB GOUDSWAARD High customer satisfaction ratings, capitalisation and and other external stakeholders. community engagement do not necessarily translate into customer relevance in today’s world. Technology has changed what was a traditionally conservative sector CUA’S PATH and all banking institutions must keep up, regardless of their business model. CUA’s investment in its digital CUA has a long and successful history and can be traced It is a privilege to have been appointed as CUA’s CEO in capability has been significant and will remain high for back to several small credit unions in the February 2015. Integral to the role of CEO of Australia’s MUTUAL SUCCESS the foreseeable future. The new and future consumers we 1940s. The CUA we see today is the result of many largest financial services mutual is the responsibility need to attract expect contemporary digital based access mergers and the vision of our founders. In this regard, we to contribute to the health of the wider sector as well To continue the theme from the Chairman’s report, as to products and services - CUA is determined to meet were sad to see the death of CUA’s founder, Jack Harvey, as to the membership of CUA. I am looking forward to a mutual we judge our success through the value we these expectations. earlier this year. CUA will remain faithful to Jack’s belief the challenges. My career has significantly embraced have contributed to our customers. CUA experienced that customers should get an honest and fair deal. mainstream banking at ANZ and I believe CUA’s size a stellar lending year in FY15 leading to a strong result On-line access to our lending products is an obvious and market position warrants such experience. I have with another $48.79 million in Underlying Net Profit area for investment and innovation. CUA has risen to the I am optimistic about CUA’s future. While the challengers had responsibility for a defined consumer segment as After Tax boosting reserves and representing a positive challenge here through our web and mobile-based Online are many I believe CUA is a real competitor in financial CEO of the now privatised Rural Finance Corporation of investment in the sustainability of CUA and our ability to Banking apps and changes made to our personal loan services. We are determined to deliver to our customers Victoria. continue to provide our customers with value for money. approval processes. This latter improvement has led to a through award winning products, high quality service, significant uplift in personal loan applications during the keen pricing, and our technological investment. Our belief For me, a major attraction of CUA was its mutual The lending result for the year was particularly pleasing year. As a further example, improvements made to our in mutuality and the power of the community remain as structure and the responsibility this carries towards you and a great example of an organisation wide effort. digital capabilities in FY15 enabled almost 60,000 home the foundations for both our present endeavours and a as both our customers and shareholders. Additionally, Nationally, loan growth in housing for the year was loan redraws, representing approximately $126 million of sustainable future. I value CUA’s efforts in supporting the communities nearly 7%, driven by the booming markets in Sydney lending, to be completed via our on-line banking service – that support it. Looking out for communities and the and Melbourne. By comparison, CUA’s housing loan with little or no staff intervention. We will start delivering disadvantaged are second nature for me. As a Director growth for the year was 16.85%, indicating that we are similar improvements to our home loan processes during of World Vision, an international aid and development taking market share from other lenders. Importantly, FY16. agency that works with children, families and this result saw above average growth for each of the communities to overcome poverty and injustice, I am twelve months, demonstrating that our offer consistently acutely aware of disadvantage and believe that society, resonated with customers. This also translates to a including corporations, must do more to assist. growing reputation and proof of our relevance to the needs of both existing customers and those looking for an alternative to mainstream banks.

6 MUTUAL SUCCESS 7 Corporate Governance CUA’s mission, to

The Board of Credit Union Australia Ltd (CUA) is Privacy Principles and takes steps to ensure that “help our customers enrich their lives through delivering responsible for the corporate governance of CUA and its customer information is not disclosed to, or accessed by, controlled entities (the CUA Group). unauthorised persons. consistently better-value banking… CUA is an Authorised Deposit-taking Institution (ADI) supervised by the Australian Prudential Regulation RISK MANAGEMENT because profits go back to customers.” Authority (APRA) under the Banking Act 1959. CUA is also supervised by the Australian Securities & Investments Risk management is an essential component of CUA’s Commission (ASIC) under the Corporations Act 2001 and ability to fulfil its mission. has been granted an Australian Financial Services Licence and an Australian Credit Licence. The Board-approved Risk Appetite Statement clearly defines and articulates the amount of risk that the Board is prepared to accept in conducting business. CUA’s ROLE OF THE BOARD Risk Management Framework is based on a ‘three lines of defence’ model. This framework encourages risk The Board is responsible for developing and guiding a ownership by all employees and fosters an inclusive risk viable, mutually owned business that will fulfil CUA’s culture. mission, to “help our customers enrich their lives through delivering consistently better-value banking… because profits go back to customers.”

The Board of CUA is ultimately responsible for the execution of this mission by providing oversight and BOARD COMMITTEES guidance to the management of the CUA Group.

The Board has adopted a formal Board Charter setting To assist in the execution of its responsibilities the Board has established a number of committees. All directors serve out in further detail its role, responsibilities and structure on Board Committees and/or on the Boards and Committees of the subsidiaries. within CUA’s overarching corporate governance framework.

Annually the Board undertakes a formal, external BOARD performance review. The evaluation process aids the Board in ensuring it maintains an appropriate mix of skills to enable CUA to meet its strategic objectives. Board Remuneration Board Strategy Board Risk Committee Board Audit Committee Committee & Innovation Committee CONFLICT OF INTEREST Advise on current and Review effectiveness of Assist the Board Monitor and provide future risk appetite and risk financial reporting and in discharging its guidance to management Directors must keep the Board advised of any interest management strategy professional accounting responsibilities in relation on major strategic issues, requirements to remuneration matters opportunities and initiatives that could potentially conflict with the interests of CUA. Oversee and align current under CPS 510 The Board has developed guidelines to assist directors in and future risks relative to Review and endorse for Evaluate and provide annually disclosing potential conflicts of interest. risk appetite and capital Board approval the annual Advise on CUA’s recommendations to the CUA is focused on managing risk for members and having management financial statements of CUA remuneration framework Board on major strategic for non-executive directors issues or proposals a proactive risk culture that is constantly evolving. Ensure prudential and Review and endorse for MEMBER PARTICIPATION statutory requirements for CUA Financial Planning Advise on CUA’s Guide management on risk are met (CUAFP) Board approval Remuneration Policy transformation, innovation the annual financial and performance-based or technologically-related Ensure risk management Members have two relationships with CUA. As customers, REMUNERATION POLICIES FOR DIRECTORS statements of CUAFP incentive framework strategies and major strategy, framework and members exercise choice through their selection of the projects management practices Oversee the internal and Advise on strategic human products and services they believe are best suited to Remuneration levels are designed to attract and retain limit risks to prudent levels external audit function resources and workplace their individual needs. As owners/shareholders, members appropriately qualified and experienced non-executive health and safety policies Oversee appointment, Monitor compliance with have the right, and are encouraged, to participate in the directors. The Board obtains independent advice on removal, performance and statutory reporting, other Advise on succession governance of their credit union. the appropriateness of remuneration given trends in objectives of the Chief Risk legislative requirements planning comparative companies. Non-executive directors do not Officer (CRO) (including APRA & ASIC) Assess all persons, as and internal company receive performance-related remuneration. CUA Group Ensure an objective view dictated by the CUA policy ETHICS products or services provided to directors must be on the on the internal control Constitution and the Fit & same terms and conditions that apply or are available to environment of the Group Proper Policy, as to their To maintain member confidence in the integrity of CUA, members/customers/staff generally. Subject to meeting fitness and propriety directors have adopted and adhere to a Directors’ Code specific criteria, including serving a minimum of six years of Conduct, which is based on the code developed by on the Board, a director retiring from the Board may the Australian Institute of Company Directors. At CUA receive a lump sum retirement benefit equivalent to the great importance is placed on the confidentiality of director’s average annual board fee for the previous three personal information. CUA complies with the Australian years.

8 MUTUAL SUCCESS 9 CUA & Communities

of their fundraising for the year as it is combined with the ENGAGING WITH COMMUNITIES annual cross-country or other school event. Over the last six years the program has helped schools to raise more Community as a concept means different things to than $16 million to purchase computers, books, sporting different audiences. To CUA, it is not a narrow concept equipment and other vital resources. based on proximity or similarity of interest but rather it encompasses the diversity of customers that choose to CUA believes that helping schools find wealth in health support us - their families and extended families, and the accords strongly with the values of our customers and wider touch points of their lives, such as the schools their their families. children attend, the charities and causes they support, and their sporting interests. COMMUNITY CARE It is a clear expectation of customers that corporates should support the communities that support them. For the last four years CUA has been providing schools CUA has always advocated this view but takes it further, participating in the School Fun Run program with the believing that a community program should form added bonus of applying for a $5,000 grant through a virtuous circle with customers. As our financial CUA’s Community Care program. The Community Care performance improves CUA will increase its investment concept is relatively simple: School Fun Run participating in communities via support for the charitable and schools within a set radius of selected CUA branches community needs that our research shows are important are given the opportunity of nominating projects for to them. This support is demonstrated through the community voting. The community voting period is set community partnerships and programs CUA operates. at four weeks and a pro-rata voting system ensures a level playing field given the disparate sizes of the schools involved. SIDS AND KIDS Community encompasses Now in the second year of the partnership, SIDS and Kids (SnK) is CUA’s largest single community partner. the diversity of customers SnK needs little introduction as it is an iconic charity in Australia, with three threads to its core business: that choose to support us. • Providing dedicated grief and bereavement support to Over the last four years, CUA has shared nearly families who have experienced perinatal, neonatal or $300,000 in Community Care grants with schools baby/infant loss and communities, as a reward for choosing health-based • Ongoing education, preventative action and fundraising and to promote the importance of childhood representation through support, training, leadership and health. This program continues in FY16. promotion, and • Advocacy and research for SIDS and stillbirth. VOLUNTEERING As part of the partnership, CUA provides financial support for the vital research SnK undertakes around Community support extends beyond financial assistance stillbirth, SIDS and safe sleeping practices. CUA staff have as CUA encourages staff to actively assist communities enthusiastically embraced this partnership with diverse through volunteering for charity or similar work. This fund-raising and volunteering activities occurring during policy recognises that many staff want to assist directly in the year. charitable work and that encouraging this assists in staff engagement. To this end, CUA provides a full day’s leave each year to enable staff to volunteer for a worthwhile SCHOOL FUN RUN PROGRAM community assistance opportunity, not necessarily restricted to the charities CUA directly assists. Child obesity is increasingly seen as a major health issue confronting Australia. Upwards of one in four children are overweight or obese, putting them at greater risk FINANCIAL LITERACY of developing chronic conditions such as diabetes and heart disease. The School Fun Run program was initiated CUA is also seeking to extend its commitment to schools 28 years ago as a way of providing a healthy alternative by examining the issues connected with the development to chocolate drives for schools around the country. of a financial literacy program. Financial literacy is a Promoting fun, fitness and nutrition, over 800 schools key strategy of the Government and financial services participate in a fun run each year. For many schools, this providers have been urged to contribute their expertise in has become an annual event that represents the majority this crucial area of education.

10 MUTUAL SUCCESS CUA Board

ALAN BEANLAND NIGEL AMPHERLAW PAUL BEDBROOK DEBORAH O’TOOLE MICHAEL PRATT WAYNE STEVENSON PETER DOWLING ELIZABETH FOSTER CHRISTOPHER B.Sc., FAICD B.Com., FCA, MAICD B.Sc., FFIN, FAICD LLB, MAICD SF Fin, GradDip (Org Beh), B.Com, CA, FAICD AM, BA(Acc), FCPA, FAICD B.Bus.(Accounting), FCPA, WHITEHEAD Chairman and Independent Independent Non-Executive Independent Non-Executive Independent Non-Executive FAICD, FAIM, FAHRI, AMP Independent Non-Executive Independent Non-Executive GAICD, MAMI B.Sc (Hons), FAICD Non-Executive Director Director Director Director (Harvard) Director Director Independent Non-Executive Chief Executive Officer and Independent Non-Executive Resigned 31 December 2014 Director Executive Director Director Resigned 31 July 2014 Resigned 30 January 2015

Alan joined the Board Nigel joined the Board Paul joined the Board in Deb joined the Board Mike joined the Board Wayne joined the Board Peter joined the Board Elizabeth joined the Chris joined the Board in September 2009 and in March 2011. He is July 2011. He is a member in March 2014. She is a in January 2013. He is in February 2014. He is in March 2003. He was Board in January 2006 in September 2011. was elected Chairman Chairman of the Board of the Board Strategy & Director of CUA Health Chairman of the Board a member of the Board a member of the Board and while a Director she He was a Director of in November 2009. In Audit Committee and Innovation Committee, Ltd and Credicorp Risk Committee and is Audit, Board Risk and Strategy Consultative was a member of the Credicorp Insurance Pty addition to his role as member of the Board Risk Chairman of Credicorp Insurance Pty Ltd. a member of the Board Board Remuneration Committee and, until July Board Audit, Board Risk Ltd, CUA Health Ltd and Chairman of the Board, and Board Remuneration Insurance Pty Ltd and a Audit and Board Strategy Committees. 2014, a Director of CUA and Board Remuneration CUA Financial Planning Deb is a qualified lawyer Alan is Chairman of the Committees. Director of CUA Health & Innovation Committees. Health Ltd. Committees. She was also Pty Ltd. He was also a and has more than 30 Wayne’s executive Board Remuneration Ltd. a Director of Credicorp member of the Board Nigel has extensive years’ experience in Mike has had an extensive background is largely Peter was a Partner of and Board Strategy & Insurance Pty Ltd. Strategy Consultative experience in risk Paul has over 30 years’ mining, resources and rail career in banking and in banking and financial international accounting Innovation Committees. Committee. management, technology, experience in financial freight industries, 25 of services where he has firm Ernst & Young, a At the time of her He is a member of the consulting and auditing services, specifically which have been focused throughout Australia, New held several senior Fellow of CPA Australia, resignation, Elizabeth Chris has over 25 years Board Risk Committee for financial services across the areas of in the finance function Zealand and Asia. He has positions across Australia, The Institute of Chartered was a self-employed of experience across and a Director of institutions in Australia banking, insurance and including as CFO at held very senior positions New Zealand and Asia. Accountants in Australia accountant who had a broad range of Credicorp Insurance Pty and the Asia-Pacific investment management. Aurizon, Qld Cotton and at Standard Chartered Wayne brings strong and The Australian extensive experience in organisations and roles. Ltd. region. He is a chartered He is a former executive MIM Holdings. She served Bank, , National expertise of the financial Institute of Company finance. She previously He commenced his career Alan’s business accountant by profession. with ING (the Dutch as Chairman of the Audit Australia Bank and Bank services industry Directors. Peter received worked for Telstra in in the IT industry before experience spans four He was a Partner of global banking, insurance Committee for CSIRO of New Zealand. In all including 15 years in CFO the Centenary of senior management moving into general continents and exceeds PricewaterhouseCoopers and investment group) and the Norfolk Group these roles he has driven roles involving significant Federation Medal in 2001 positions. She was CFO at management roles, four decades with wide for 22 years where and held CEO positions at and also on Boards of the major change, delivering acquisitions, restructures and was made a Member CPA Australia, a finance including establishing experience as a Director he held a number of INGDIRECT, ING Canada, MIM Group and the QR strong financial results and divestments. Most of the Order of Australia consultant at the Catholic the Australian subsidiary on diverse boards. Alan leadership positions, ING Australia and ING National/Aurizon Group. and much improved recently he was Group in 2007 for services to the Education Office and for an international IT held senior executive including heading the Asia Pacific. In 2013 she served as an customer service across General Manager, Group accounting profession, CEO of RACV Credit services provider. Chris positions with Colonial financial services audit, Advisory Board Member multiple channels. Mike Strategy, ANZ and prior business, education and Union. held executive level roles Paul is Chairman of Mutual for 16 years. He business advisory at Pacific Aluminium. is a former President of to that held the role of the arts. at a number of financial Zürich Financial Services She served on the has extensive experience services and consulting Deb was also a member the Australian Institute of CFO Asia Pacific, ANZ. services institutions Australia, Elanor Investors At the time of his Board of Credit Union in a number of industry businesses. He also held of the former Workers’ Banking & Finance and including Advance Bank, Group and Disability Wayne is a Director resignation, Peter held a Foundation Australia from sectors including financial a number of senior client Compensation Board was the Inaugural Joint and Bank of Sports Australia. He is also at Onepath General number of Directorships 2003 to 2008. services, superannuation, Lead Partner roles. of Queensland and a President of Finsia. Scotland. a Director of the National Insurance, Onepath Life including non-executive life insurance, property former member of the Nigel is a Director of the Blood Authority. Mike is Commissioner Insurance, ANZ Lenders roles at Credit Union Chris was a Director and technology. He Queensland Country Australian Red Cross for Service in the NSW Mortgage Insurance Foundation Australia, with Limited and served as the Chairman of Health Society. Blood Service, Grameen Government and Deputy and is Chairman of QMS TAFE Qld and Workcover was also a Director of a Superpartners (2006- Foundation Australia, Deb is a Director of Chancellor at the Media Ltd. Qld. number of community 2012) and as a Director of Quickstep Holdings the Wesley Research University of Western and charitable Spotless Group Limited Limited and Elanor Funds Institute, Sims Metal Sydney. He is also organisations. (ASX Listed) (2008- Management Limited. and is a member of the Chairman of Bennelong 2012). Queensland University Funds Management, a Alan is currently a of Technology Banking & Non-Executive Director Director of Colonial Finance School Advisory of TAL Life Insurance and Foundation and, in Board. Chairman of TAL’s Risk August 2014, was Committee. appointed to the Board of Orygen, The National Centre of Excellence in Youth Mental Health.

12 MUTUAL SUCCESS 13 Executive Committee

ROB GOUDSWAARD STEVE CHUGG SUE COULTER PHILIP FRASER DAWN LINAKER MATTHEW LOBDELL JASON MURRAY SCOTT NORTH ANDY RIGG ANTHONY TAYLOR B.Ec, GradDip CorpFin, FFIN, MBA, B.Bus, MAICD MAICD CIMA, CPA, MAICD FAHRI, MAITD, MHRM, MAICD B.Sc, MAICD B.Bus, PGDip Mgt, GAICD B.Com, MBIT, FCA, MAICD MAICD CPA, F.Fin, MAICD FAICD Chief Operating Officer General Manager, Business Chief Executive Officer, CUA General Manager, Human Head of Strategy General Manager, Products & Chief Risk Officer General Manager, Sales Chief Financial Officer Chief Executive Officer Transformation & Technology Health Ltd Resources Marketing Resigned 11 September 2015

Rob joined CUA in Steve joined CUA in April Sue joined CUA in May Philip joined CUA in Dawn joined CUA in Matt joined CUA in Jason joined CUA in Scott joined CUA in July Andy joined CUA in July Tony joined CUA in February 2015 and 2015. He is responsible 2010 and is responsible March 2011 and prior to October 2010. As GM February 2013 and is June 2010 and as GM 2013. Scott is responsible 2013 and was appointed October 2011 and as attends all CUA Board for enabling a range for IT and business becoming CEO of CUA HR, her focus was responsible for overseeing Products & Marketing for leading the GM Sales in March 2015. CFO, his major areas of and Committee meetings. of customer-centred transformation which Health Ltd (CHL), he was on supporting the the development of he is responsible for strategic development, He is responsible for responsibility include He is an Executive support services including includes delivery of the the Head of Finance, business through its organisational strategy shaping and executing implementation, CUA’s product sales and finance, treasury, legal, Director of Credicorp banking operations, CUA portfolio of strategic responsible for board, transformational change and alliance opportunities, the customer strategy challenge and distribution channels board and governance. Insurance Pty Ltd, lending operations and projects. With the new regulatory and business journey with a specific as well as the through his ownership of assurance of CUA’s risk including branches, He attends all CUA CUA Health Ltd and is credit decisions. He is also core banking platform performance. focus on culture change, advancement of CUA’s the products, marketing, management strategy lending, broker and CUA Board meetings together Chairman of Credicorp responsible for leading in place and performing talent attraction and innovation capabilities corporate affairs and and risk frameworks. Direct call centres in with the Board Audit, He is responsible for Finance Pty Ltd. and embedding CUA’s well, Sue is now focussed retention, learning and solutions. customer insights The risk functions work Melbourne and Sydney. Board Risk and Board developing and delivering digital strategy and sales on leveraging this and development and functions. He is also a to proactively drive a Strategy & Innovation Rob has over 30 years’ CHL’s future strategic Matt has over 20 Andy has 30 years’ effectiveness to meet investment through the increasing leadership Director of Credicorp culture of best practice Committees. He is also a experience in the banking direction, with a clear years’ experience in experience in retail changing customer delivery of a continuous capability. Insurance Pty Ltd. risk management with Director of CUA Health and financial sector. Most belief that customer the Australian financial financial services with needs. program of customer focus on execution to Ltd, Credicorp Finance recently he was CEO experience is central Prior to CUA she headed services industry, Jason has developed the last 20 years in sales service and product risk appetite, corporate Pty Ltd and Chairman of and Director of the Rural Steve has more than to success. CHL places the HR function at a including executive roles his financial services and service leadership enhancements. She is governance and CUA Financial Planning Finance Corporation of 20 years’ experience a significant focus on leading superannuation with some of Australia’s experience through roles. His career began responsible for replacing regulatory requirements. Pty Ltd. Victoria, and Chairman in banking operations optimising customer company, where leading banking, a career working in at a large UK mutual the remaining legacy of the Young Farmer’s in Australia. He has experience, through she supported the superannuation and product, marketing and Scott has over 20 which became Halifax Tony has more than systems and enhancing Finance Council. He held a extensive experience simple-to-understand organisation through wealth management innovation roles in retail years’ experience in PLC, before establishing 30 years’ experience CUA’s digital and data variety of senior positions in building teams and products, which are a significant business companies. Immediately and corporate banks risk management, third party lending for in financial and solutions. at ANZ including CRO, working with them to competitively priced transformation. She also prior to joining CUA, and health insurance audit, technology and Barclays UK. He led management accounting, Institutional Global; deliver positive customer Sue brings over 30 and meet expectations spent an extensive and Matt led the redesign companies. Prior to accounting, with the the transformation of with the last 13 in CFO Managing Director, outcomes and strong years’ experience through exceptional varied career in one of of the personal joining CUA he spent last 13 years being in Barclays Bank Retail roles within the financial Regional, Rural & Small returns. He has held in financial services delivery. Australia’s Tier 1 financial insurance product and seven years in the UK the financial services African operations services industry. He was Business Banking; a variety of executive across a broad range services organisations. service model at one where he worked for a industry. He has extensive and the purchase and previously CFO Retail, Philip developed his General Manager, Pacific and management of senior management Dawn has more than of Australia’s leading number of leading banks experience in enterprise integration of South Bankwest where he spent experience and career as & Personal Banking roles with ANZ across and executive positions 22 years’ experience in superannuation funds. shaping and managing risk management in Africa’s largest retail bank six years improving the Group Financial Controller Asia and COO, Small multiple customer within Australia and financial service change award-winning products financial services, with a ABSA. financial management of and Head of Finance He has facilitated a to Medium Business segments including the UK. During this leadership and HR and solutions built to strong focus on digital the Retail Division and in some of the UK’s number of merger and In Australia, Andy headed Australia & New Zealand. General Manager, Esanda time Sue successfully management. address specific customer innovation in retail supporting the east coast leading asset managers acquisition transactions Branch Performance & ANZ Direct Sales, delivered a number of needs. banking. His previous expansion program. He Rob is a Director of and general insurance Dawn’s experience with ANZ, Suncorp and at a major Australian and Queensland State transformational change roles include Head of played a leading role World Vision Australia providers. Moving to includes consulting Norwich Union Australia. Jason also engages in Bank with accountability Manager of Regional programs for HBOS, Risk Digital and Head of through the challenges and Chairman of its Audit Australia in 2008, he and developing HR influencing the policy, for 150 branches and a Business Banking. BankWest and more Enterprise Operational of the GFC and the Committee. He is also a spent time as CFO for and learning strategy, credentials and standards mortgage sales team of recently CUA. Risk Australia and New Director of Cuscal Ltd and Steve’s previous a private equity-owned design and development, of future finance sector 50. Zealand for GE Capital as acquisition. Places Victoria. roles have involved Sue has also previously entity, before moving organisation design and professionals via his well as senior roles driving Andy has management understanding and managed large-scale to a major Queensland change management. representation on the Prior to that, as CFO of the evolution of enterprise and leadership meeting the needs back-office processing superannuation provider Finsia Retail & Business the Papua New Guinea risk management for NAB qualifications at Warwick of a diverse range of areas as well as digital, as Head of Finance, Banking Industry Council. Banking Corporation, Group’s digital banking Business School and customers such as third products and strategy assuming responsibility Tony led the vendor businesses, Ubank and completed the Executive party dealers, agricultural development teams. for corporate finance and due diligence team in Direct Banking. Leadership Program at and commercial clients, corporate services. its privatisation and Harvard Business School. corporate and retail Scott is a Fellow of the post-sale took over customers. Institute of Chartered the role of CFO Bank Accountants, a Fellow South Pacific. This role of the University of expanded to encompass Melbourne and a Director shared services, IT and of Australian Retail Credit marketing. Association.

14 MUTUAL SUCCESS 15 In memory of Jack Harvey

“ The CUA we see today is the result of many mergers and the vision of our founders. In this regard, we were sad to see the death of CUA’s founder, Jack Harvey, earlier this year. CUA will remain faithful to Jack’s belief that customers should get an honest and fair deal.”

- Rob Goudswaard CUA CEO

Jack Harvey CUA Founder 1923-2015 16 MUTUAL SUCCESS Annual Report MUTUAL SUCCESS Your Success is our Success

Credit Union Australia Ltd ABN: 44 087 650 959 AFSL: 238 317 Registered Office: Level 23 145 Ann Street QLD 4000 P: 133 282 W: cua.com.au

Annual Report for the year ending 30 June 2015