P&N Bank has taken encouragement from record lending in recent months after being set back by a profit reversal.
Results lodged with the corporate regulator yesterday show the bank's net profit for 2013-14 gave up the previous year's gain, shedding 30 per cent to $9.1 million.
The profit fall was influenced by a combination of flat revenue and higher staff costs.
New chief executive Andrew Hadley said the result reflected the "undoubtedly tough (lending) market" and underlined the need for P&N to attract a broader range of customers.
"The focus for us at the moment is to get some solid revenue growth," said Mr Hadley, who succeeded P&N's long-term chief Fred Huis in January.
"We have just come off three record lending months (May, June and July), so things are certainly trending in the right direction," he said.
Loans and advances for the year to June 30 increased by $63.5 million to $2.45 billion, while members' deposits grew $260.2 million to $2.29 billion.
Net interest income was up just one per cent to $60.1 million.
The past 18 months have been a period of unprecedented change for the former Police & Nurses Credit Society, with its conversion to a mutual bank and the shake-up in its senior ranks.
Mr Hadley, now armed with a new five-year strategic plan, has flagged a more aggressive approach to growth and has been rebuilding P&N's executive via a string of outside appointments to support his strategy.
The appointments include, most recently, NAB's WA general manager Sean FitzGerald as P&N's new chief of retail banking and distribution.
P&N's annual report also revealed the group paid $300,000 in June for a 3.46 per cent stake in a new WA superannuation software start-up, Super Myway.