Dispatch. How Home Loan redraw can work for you. Preparing for your next posting. Defence Bank supporting Defence communities. Spring 12 ISSUE 30

How Home Loan

redraw can

work for you

Dispatch

Preparing for your

next posting

➢

Defence Bank

supporting Defence

communities

More access to

your cash with

rediATMs

We know that your ADF career can take you anywhere in Australia and it’s important that you are still able to access your cash easily. That’s why we’re part of the rediATM network, making it easier for our members with free access to more than 3,400 ATMs across Australia and on base. So whether you’re home or interstate, you now have more access to your cash in more places.

We’re excited to announce that our new ‘Navy’ pig will be arriving at your local branch very soon. It’s available for free with all new Kids Club memberships, so now your kids can choose between a ‘Navy’ or ‘Camo’ pig to start off their savings. Defence Bank’s Kids Club is a fun and engaging way to teach your kids how to save from an early age. They also receive regular newsletters including savings tips and colouring competitions. So, if you have kids under the age of 12, make sure you sign them up for Kids Club today, at your local Defence Bank branch.

We’re adding a new member

to the Defence Bank family

Defence Bank is pleased to have been awarded the CANSTAR 5 Star Rating for our iSaver online savings account. The star ratings system is designed to help consumers increase their chances of finding the right product to suit their needs. So a CANSTAR 5 star rating means that our iSaver product offers you a competitive rate, value for money and low fees.

To find out more about an iSaver online savings account visit defencebank.com.au or ask at your local branch.

iPhone app

is coming

Due to popular demand from our members, we are developing Defence Bank’s Mobile Banking app for iPhone which will be ready soon. We’re also working on an Android app so keep an eye on our website for updates and more information. Visit defencebank.com.au

iSaver award

2

How Home Loan redraw can work for you

What is it?

Home Loan redraw is a feature on some Home Loans that allows you to redraw some or all of the extra loan repayments you have made to your loan.

How will it benefit me?

The extra repayments you make reduce the loan amount outstanding, which then reduces the interest you pay on your Home Loan. Meaning, you will end up paying less interest in the long run. These days it’s hard to predict what the future holds so Home Loan redraw gives you one more tool to manage whatever financial ups and downs may come your way. Whether you need some extra cash for something unexpected or you decide you want to go on a holiday, Home Loan redraw offers the flexibility to access the extra repayments you’ve made on your Home Loan.

We spoke with Defence Bank Home Loan Consultant for Northern Territory, Jan Harris about her tips on Home Loan redraw. “A redraw facility gives you the ability to park all your savings

DHOAS Saver Home Loan

Great features,

great rate

> Unlimited free redraw > 100% mortgage offset > No monthly fee

Terms, conditions, fees and charges apply and are available on request. Approval subject to the satisfaction of Defence Bank’s lending criteria. DHOAS eligibility criteria also apply. Mortgage offset available on variable rate loans. Unlimited free redraw minimum amount $100, available on variable rate loans. For current interest rates, go to defencebank.com.au

For more information call 1800 033 139

or visit your local Defence Bank branch.

Loan Amount

Term of Loan Years

Extra repayments

Redraw

$

in the mortgage, reducing the interest payable on the loan. Then the money can be easily redrawn if required.”

Home Loan redraw is also tax friendly, as you’re not earning any interest on your savings, instead you’re reducing interest payable on your Home Loan.

if you’d like to discuss redraw and see our great range of Home Loans, contact your local branch on base to speak with one of our dedicated Defence Bank Home Loan Consultants or call us on 1800 033 139.

Defence Bank

in the

community

Gecko’s Family Day, a huge success

This year marks the 5th anniversary for the Gecko Family Centre and what a better way to celebrate, than with over 2000 people attending their Family Day in July. Defence Bank teamed up with the local car dealerships and had a ‘car’ themed stand this year, with cars on display for everyone to enjoy. Our much loved ‘Treasure Chest’ competition even had it’s own ‘car’ theme, with great prizes awarded to the lucky few whose keys opened it.

RAAF Darwin on display

RAAF Base Darwin opened its gates to the NT community in August to show their appreciation for the support they received during the recent ‘Pitch Black’ exercise. Locals got an up close look at aircraft from all over the world including Australia, Singapore,

Thailand, the US and Indonesia. Defence Bank had a stand with staff running competitions and giving away great prizes.

Australian Army Infantry

Museum officially opens

The Australian Army Infantry Museum was officially opened by Chief of the Defence Force, General David Hurley, AC, DSC on 24 August. The museum houses over 20 exhibitions covering Australian Army overseas conflicts from Sudan in 1885, to current deployments such as Afghanistan. Defence Bank was there on the day to join the festivities and sponsored the morning tea held after the opening ceremony.

Enoggera welcomes

home our troops

On 21 July more than 900 returning soldiers, sailors and airmen returned from deployment in Afghanistan. Brigadier Greg Bilton CSC, ADC proudly welcomed home soldiers from Mentoring Task Force 4 (MTF- 4), Forced Communication Unit 6 (FCU-6), Special Operations Task Group Seventeen (SOTG-17) and Mentoring Task Force Three (MTF-3). Returning troops were embraced by their loved ones and the community in an emotional welcome home parade. The parade, held at Gallipoli Barracks, also farewelled Artillery Mobile Training Team One (AMTT-1) who deployed in late July.

Defence Charity Ball,

Brisbane

The Australian Aerospace Defence Force Charity Ball is held each year to raise money for Legacy to help them continue their great work caring for those who have lost loved ones serving Australia. This year there were exciting displays including boats, helicopters and even a tank with Navy divers showing off their skills. Defence Bank was there to sponsor the Defence High Rollers Casino with guests trying their luck at Roulette, Black Jack, Money Wheel and Two Up.

16 & 17 november 2012

Army recruit Training Centre – Kapooka, nSW Take charge and register your unit team today Email: [email protected]

More information at www.army.gov.au/artc

proudly brought to you by

ATTENTION:

ARMY

NAVY

AIR FORCE

BE A FORCE TO BE RECKONED WITH AT

k-series

Dispatch  | 

In the community

Here to serve

Name: Andrew Searle

State Manager NSW & ACT

At Defence Bank, our State Managers work behind the scenes to ensure our branch staff have all the support they need to help you, our members, get the most out of your banking experience. We spoke with Andrew Searle, State Manager for NSW & ACT who recently joined the Defence Bank team. “I regularly visit all our branches in the NSW and ACT branch network and have really enjoyed meeting our members and seeing how involved Defence Bank is in the Defence Community. Many members, including some senior Defence officials speak very highly about the role we play in supporting Defence. In the short time

I’ve been here I’ve already been involved in several community activities including the ADFA Open Day, Australian Army Infantry Museum Opening and RMC Golf Club 50th Anniversary.”

Andrew also has a personal connection to Defence with two family members currently serving in the Air Force. Andrew enjoys motivating his staff to not only work towards achieving their career goals but also makes certain that they deliver the service excellence that Defence Bank is committed to providing for every member. Whilst Andrew is based at our RAAF Base Richmond branch, he can be regularly seen visiting all of our NSW and ACT branches and introducing himself to Defence Bank members.

Notice of AGM

The 37th Annual General Meeting of the Defence Bank Limited ABN 57 087 651 385 (Company) will be held on Monday 26 November 2012 at Medina Grand Melbourne, Level 5, 189 Queen St, Melbourne, commencing at 12:30 pm. An agenda is included in the 2012 Election of Directors ballot pack distributed with your September 2012 member statements.

BY ORDER OF THE BOARD, J.M. Linehan, Secretary

In accordance with Defence Bank’s Constitution, the Election of Directors is held by secret postal ballot. The information and material required to allow members to cast a valid postal vote is contained in the 2012 Election of Directors ballot pack, which is distributed with your September 2012 member statements. As there are four candidates and only two vacant Director positions, a postal ballot is required. The Board of Directors has appointed Bill Velos, from Velos Lawyers, as Returning Officer to conduct the postal ballot. Should you wish to participate in the Election of Directors, you will need to complete a postal ballot as per the instructions outlined in the ballot pack and lodge it with the Returning Officer no later than noon AEDT, Monday 12 November 2012. If you believe you are entitled to vote and have not received a ballot pack, or the contents are incomplete or damaged, you should contact the Returning Officer – Bill Velos (03) 8636 1800.

2012 Election of Directors

The Defence Bank in the community photo competition we launched in the last issue is off to a great start. Keep sending in your photos and with Defence Bank being busy in the community leading up to the festive season they’ll be plenty of opportunity to get the camera out and start snapping. Send in your best community photo and you could WIN! Each quarter we will award the member who sends in the best photo with a $100 EFTPOS card. Scan the Qr code to upload your photos.

Send us your photos to

Preparing for your

next posting

preparing for your next posting can be challenging and as always, organisation and planning are essential, especially when it comes to your finances. Luckily for our members, Defence Bank has that part sorted. We can update your details, sort out insurance for your new home and even help with a loan if you need it, all at your local branch.

Finding your new local branch

Defence Bank has the largest branch network in the ADF with 43 branches around Australia, so chances are wherever your next posting takes you, we’ll be there to help look after your financial needs. So when you find out your posting, pop into your local branch for a chat with one of our friendly staff who can update your contact information and make sure you know the location and branch manager of your new local Defence Bank branch.

Get pre-approved before you go

If you’re looking at buying a home at your next posting location, then hit the ground running with a Home Loan pre-approval. This way you’ll know straight away how much you can borrow so you can start looking for the perfect home before you leave. Come in and chat to your local Defence Bank Home Loan Consultant who understands Home Loans for Defence Force members and can work with you to find a loan that suits your needs.

Get your finances sorted

Make a list of all your liabilities and the minimum repayments, when they are due and check that all payments have been made. Consider consolidating your finances to make it easier to keep track of them. Defence Bank offer a range of transaction accounts and loans to help streamline your finances.

Protect your credit rating

Update your forwarding address and ensure you make the final payments on all utility and telecommunication services. A large number of defaults are from utility or telecommunication companies, which in the long run could have a negative effect on your credit rating. Lastly, make sure that you update your details with your insurance company as you don’t want fall behind on your policy payments and have your cover lapse.

Come in and say hello

Once you’re settled in at your new location come into your new local branch and meet the team. We can update any details that may have changed and help you find competitive quotes on insurance for your new home, we’ll even help you through the application process.

Defence Bank is here to make the transition as easy for you as possible, so if you’re getting ready for your next posting, come in and speak with one of our friendly staff today or call us on

1800 033 139, 8am to 8pm AEST weekdays.

6

Despite uncertain economic times and a highly competitive banking environment, Defence Bank delivered a pleasing annual financial result for 2011/12. This provides us with the funds to reinvest back into enhancing products and services for our members whilst ensuring our financial security.

Change to Defence Bank

In November 2011, at our Annual General Meeting, 94% of members voted in support for us to change our name from Defence Force Credit Union (Defcredit) to Defence Bank. Becoming a member-owned bank meant we were able to remain relevant in the current banking environment, whilst offering the security and stability that comes with belonging to a bank. We have been able to offer even more products and enhanced services to our members, whilst retaining our competitive fee structure. Because we remain a member-owned bank, we continue to operate to benefit our members.

More for our Members

During the past year, we have introduced a number of initiatives focused on providing members with better access to banking services wherever they are. We extended our Contact Centre hours to 8am to 8pm Monday – Friday, introduced Mobile Handset Banking and began issuing Visa payWave enabled Debit and Credit cards.

We also launched several new products for our members including Salary Saver, enhanced Business Banking and the Multi-Currency Cash Passport.

Our annual member survey showed an 88% satisfaction rate with the quality of service we provide to our members. We also continue to remain dedicated to maintaining the largest branch network in the ADF.

Prudential Strength

This year we delivered an after-tax surplus of $10.5m representing 0.87% return on average assets. We grew by 7.25% approaching $1,300m in assets on book. We also used the opportunity to increase our reserves to 15.60% well above our regulatory requirements.

Defence Home Ownership

Assistance Scheme (DHOAS)

During the last financial year Defence Bank successfully launched the DHOAS Saver Home Loan. DHOAS Saver was introduced to compliment our suite of products available through the highly successful Defence Home Ownership Assistance Scheme (DHOAS). Through this program, Defence Bank has proudly helped many Defence families buy their own home.

Innovation

In October 2011, the Defence Bank Retirement Savings Account (RSA) was awarded the 2011 Abacus Innovation Award for “an innovative alternative to traditional superannuation and pension vehicles.” Abacus is the key industry body for the customer-owned banking industry: credit unions, mutual banks and mutual building societies.

Report from

the CEO

We are committed to making

a difference for every member

through service and excellence.

Community Support

Defence Bank continues to be dedicated to giving back to our members and the community which has loyally supported us. Defence Bank sponsored a large number of major sporting events, community events and family activities around Australia. In addition, through staff fundraising efforts and Defence Bank contributions $40,000 was donated to the Defence Special Needs Support Group. We also continue to provide a strong level of support to Legacy Australia and the Salvation Army Red Shield Defence Services Sallyman trucks. In total, Defence Bank contributed over $215,000 in sponsorship monies during 2011/12.

Our People

The success and continued outstanding performance of Defence Bank can only be achieved with a motivated and dedicated workforce. Our employee engagement of 81.1% places Defence Bank in the top quartile of employers. I thank our staff for their efforts and for their dedication to making a difference for every member through service and excellence. Finally I would like to thank you, our members for your ongoing support and trust and congratulate the Board on another successful year. I look forward to an exciting and successful year ahead.

Jon Linehan

At this time of year many of our members are contemplating their next posting, so we have included a checklist in this issue to assist in the banking and financial dimension of this inevitable part of service life.

As described in the report from our CEO Jon Linehan inside, Defence Bank’s performance this year has been impressive in view of ongoing economic headwinds. Such performance is essential in continuing our commitment to serving the needs of all our members. It is especially pleasing to see the level of ongoing Defence Bank involvement and support of Defence activities across Australia, several of which are described in this issue.

As I mentioned in the previous Dispatch, in this issue we have the first in a series of profiles on my fellow directors. We begin with the Board’s Deputy Chairman Paul Mulraney below.

Best Wishes, Mark Richards

Mark Richards,

Chairman

We’re here to help

If you have any questions about anything covered in Dispatch please contact us and we’ll be happy to help.

1800 033 139, 8am to 8pm AEST weekdays defencebank.com.au

Visit your local Defence Bank branch [email protected]

The information provided is of a general nature only. It does not take your specific needs or circumstances into consideration. Before acting on this advice, please consider its appropriateness to your circumstances. Defence Bank recommends that you read the Products and Services Conditions of Use brochure, other relevant PDS, Fees and Charges Schedule and Financial Services Guide before acquiring any product. These documents are available from any branch or on Defence Bank’s website at defencebank.com.au

Defence Bank Limited

ABN 57 087 651 385 AFSL/Australian Credit Licence 234582 PO Box 14537

Melbourne VIC 8001

Important notice – Lost or Stolen Cards

Paul Mulraney

Deputy Chairman

Paul Mulraney has served on the Board of Defcredit, and now Defence Bank, for 16 years. In addition to his current role as Deputy Chairman, he has chaired a range of Committees of the Board.

Paul had a distinguished career in the Australian Army, reaching the rank of Colonel. In 1993, he was awarded the Conspicuous Service Cross for his contribution to organisational development.

After leaving the Army, Paul embarked upon a second career in public health administration, commencing at Alfred Health in Melbourne. He also served six years on the board of Doutta Galla Community Health Service in suburban Melbourne. His final appointment in public health was as CEO of Health Purchasing Victoria. Having moved back to South Australia where he grew up, Paul currently balances a range of Board and community commitments. He is a Board member of the Rural Business Support Service and is part of the National Executive of the Defence Force Welfare Association.

Paul keeps in contact with serving and retired ADF personnel in his capacity as an Honorary Colonel of the Army’s Ordnance Corps. Paul also operates a small consultancy specialising in reviewing bidders’ responses to public tenders.

Welcome to the Spring

issue of Dispatch