Annual Report 2019 2 Contents Snapshot 4 Board of Directors 9 Directors’ Report 12 Board Committees Financial Reports 14 Lead Auditor’s Independence Declaration and Directors’ Declaration 15 Independent Auditor’s Report 16 Statements of Profit or Loss and Other Comprehensive Income 17 Statements of Financial Position 18 Statements of Changes in Equity 19 Statements of Cash Flows 20 Notes to the Financial Statements 66 Glossary of Terms and Acronyms Environmental Sustainability Beyond Bank Australia cares about the community and is committed to environmental sustainability. This leaflet has been printed on Monza Recycled, manufactured by an ISO 14001 certified mill, and contains 99% recycled fibre and elemental chlorine free pulp. All virgin pulp is derived from well-managed forests and controlled sources. To help us save precious resources, please contact us to receive future correspondence in an electronic format. 3 Board of Directors SANDRA (SAM) ANDERSEN STEVEN NOLIS CHAIR DIRECTOR Residence: Melbourne, VIC Residence: Adelaide, SA Sandra (Sam) was appointed to the Beyond Bank Australia Board in Steve was elected as a Director of Beyond Bank Australia in 2009. November 2013 and appointed Chair in 2018. She has more than 18 Steve has significant banking and finance industry experience, years’ experience in the finance sector and 10 years’ experience as having worked for the Reserve Bank of Australia for 14 years and at an executive in the technology and health services industries. CPS Credit Union (SA) Limited for five years. She is an experienced executive and Non-Executive Director in the In addition to this, he has Senior Management experience at a listed, unlisted and government sectors and is currently Chair of the state and national level across both commercial and government Australian Packaging Covenant Board, Non-Executive Director of sectors. His range of expertise includes operations management, Hearing Australia, Non-Executive Director of Victorian Land Registry change management, human resources, strategic planning, Services Group, Non-Executive Director of Agriculture Victoria marketing, finance and business development. Steve is currently Services Pty Ltd, Chair of the Audit & Risk Management Committee the Executive Director Commercial for the Local Government of the Department of Premier & Cabinet Victoria and a Trustee Association of South Australia. and Chair of the Finance and Audit Committee of the Melbourne Convention and Exhibition Trust. Sam is a former managing director His tertiary qualifications include a Graduate Certificate of of Eyecare Partners Limited and a former Chief Financial Officer Management and a Master of Business Administration (MBA) of listed technology companies. Other past directorships include attained through the University of South Australia. He has also Anteo Diagnostics Limited, Rural Finance Corporation, Victorian completed studies through the Business in China Intensive School, Funds Management Corporation and Superpartners Pty Ltd. Shanghai, China. Steve is the Chair of the Board Governance and Remuneration Committee. Sam has a Bachelor of Laws and is a Certified Practicing Accountant. She is a fellow of the Financial Services Institute of Australia and the Australian Institute of Company Directors. Sam is a Director of Eastwoods Group Limited and Eastwoods Wealth Management Pty Ltd. She is a member of the Board Governance and Remuneration Committee, and the Board Customer Committee. 4 Board of Directors Board of Directors GEOFFREY JAMES KNUCKEY DAVID JOHN NICHOL DIRECTOR DIRECTOR Residence: Canberra, ACT Residence: Adelaide, SA Geoff was appointed to the Beyond Bank Australia Board in July David was elected to the Beyond Bank Australia Board in 2015. 2012. He had a 32-year career with accounting firm Ernst & Young He has over 30 years’ experience within the finance and insurance and retired as a partner in December 2009. He was partner in industry, holding a number of senior national and state roles with charge of EY’s Audit and Assurance group from 2003 until 2008 and companies such as GE, Toyota and QBE. David’s specific expertise was Canberra Office Managing Partner from 2003 to 2006. is in sales process auditing, compliance and remedial training. His experience also extends into the areas of business development, Geoff’s career included specialising in financial statements risk management, strategy and operational management. and auditing of entities of all sizes across all types of industries He is passionate about the finance sector and brings a diverse including the financial services sector. His role also included and unique set of skills to his role. David also has an extensive advising in internal audit, corporate governance, risk management understanding of the mutual sector, having previously worked and financial statements auditing and reporting. Since 2010, for CPS Credit Union (SA). He is a Graduate of the Australian Geoff has specialised in Board Non-Executive Director and Audit Institute of Company Directors and has recently completed an Committee positions in the private and public sectors. He is Applied Cyber Security Course at the Massachusetts Institute of currently Chairman or Non-Executive Director of four private sector Technology (MIT) in Boston. David is the Chair of the Beyond Bank companies and is also Chair or Independent Member of the Audit Australia Foundation Limited Board and is also a member of the and Risk Committees for a number of Commonwealth and ACT Board Risk Committee. government departments. His particular skills are in financial auditing, reporting and analysis, risk management, corporate governance and internal audit. Geoff is a Fellow of the Institute of Chartered Accountants in Australia and New Zealand and has been a Registered Company auditor since 1995. He is a Graduate Member of the Australian Institute of Company Directors and a member of the Institute of Internal Auditors. He holds a Bachelor of Economics from ANU. Geoff is the Chair of Eastwoods Group Limited and is a Director of Eastwoods Wealth Management Pty Ltd. He is the Chair of the Board Audit Committee and a member of the Board Governance and Remuneration Committee. 5 Board of Directors TRENT BARTLETT JOANNE (JODIE) BAKER DIRECTOR DIRECTOR Residence: Perth, WA Residence: Sydney, NSW Trent was appointed to the Beyond Bank Australia Board in Jodie was appointed to the Beyond Bank Australia Board in September 2016. He has over 20 years of extensive multi-industry November 2017. Jodie has over 30 years’ experience in banking Chair, Independent Director, Executive Director and CEO level and funds management. She specialises in developing and leadership and experience in listed public companies, large private implementing strategy with a strong risk management and growth companies as well as NFP and ‘for benefit’ focused enterprises agenda, driving significant gains in customer engagement and operating with diverse business models and scale across many shareholder value. Jodie is also on the boards of Export Finance industry sectors. Australia (formerly Export Finance and Insurance Corporation), Spaceship Superannuation, a superannuation fund for millennials, With a specialty in member-owned/member-governed businesses, and arts organisation, Synergy & Taikoz, and is a member of Social Trent is currently a Director, Chair of the Remuneration and Enterprise Finance Australia Credit Committee, a B corporation. She Nomination Committee and Audit & Risk Committee Member of has previously served on the boards of Disability Sports Australia Australia’s largest co-operative, Co-operative Bulk Handling and Finance Executives Institute. (CBH), Independent Chair of Margaret River Busselton Tourism Association, Chair of Good Samaritan Industries, Independent During her executive career, Jodie’s roles included Managing Chair of Travellers Choice, and Non-Executive Director and Chair Partner of Blackhall & Pearl, a board, risk and governance advisory of the Remuneration and Nomination Committee of the Australian firm, CEO and Managing Director of fintech business, Morgij Packaging Covenant Board. Analytics and senior executive risk roles at ANZ Institutional Bank, Societe Generale Australia, and BT Financial Group. Earlier in Trent also currently mentors CEOs and Senior Executives and is a her career, Jodie worked in front line and risk roles at Westpac, faculty member of the Australian Institute of Company Directors. Macquarie Bank and Bankers Trust Australia. Trent is a former CEO of Capricorn Society, one of Australia’s largest and most successful co-operative enterprises, as well as having a Jodie holds a Bachelor of Commerce from the University of Western 15 year General Management career in Australia’s largest retailers. Australia, and a Diploma from FINSIA. She is a Trustee Fellow of the Australian Superannuation Funds Association and a Graduate of the He holds postgraduate qualifications in business and e-commerce Australian Institute of Company Directors. She is Chair of the Board and is a fellow of the Australian Institute of Company Directors. Risk Committee and a member of the Board Audit Committee. He is the Chair of the Board Customer Committee and a member of the Board Audit Committee. 6 Board of Directors Board of Directors REBECCA RICHARDSON DARYL JOHNSON DIRECTOR DIRECTOR Residence: Sydney, NSW Residence: Melbourne, VIC Rebecca was appointed to the Beyond Bank Australia Board Daryl was appointed to the Beyond Bank Australia Board in in February 2018. Rebecca