S&P gives guernsey to Bendigo
(23 March 2004 – Australia) Bendigo Bank managing director Rob Hunt said Standard & Poor’s decision to place the bank on a positive credit watch will broaden the bank’s appeal in international markets.
"S&P’s statement acknowledges the progress we have made in recent years in building our balance sheet, diversifying our asset base and improving our performance," Hunt said.
The ratings agency revised the rating outlook on Bendigo to positive from stable and affirmed the bank’s BBB long-term and A-2 short-term ratings.
Hunt said the bank’s major investments had been expensed and that it was in good shape to capitalise on further growth opportunities.
Responding to issues raised by S&P about the bank’s cost base and the sustainability of its business model, Hunt said Bendigo was confident it had developed a robust, sustainable model.
"Our strategy is to build businesses which generate strong, sustainable revenues and there is now clear evidence this is working. As this occurs, our cost-to-income ratio is trending downwards and we are confident we will achieve our target of 65 percent by June 2005 balance date."
S&P commented on the fact that Bendigo held 40 percent of its loan and deposit book in interstate markets.
In further news, Bendigo’s board has decided to vote in favour of a Scheme of Arrangement for the purchase of 100 percent of Cashcard Australia Limited by First Data Corporation.
The Scheme requires some 75 percent of Cashcard shareholders to approve the deal as well as the Supreme Court’s green light.
Bendigo said it anticipated a one-off, non-operating profit of some $7.6 million before tax.
The ratings agency revised the rating outlook on Bendigo to positive from stable and affirmed the bank’s BBB long-term and A-2 short-term ratings.
Hunt said the bank’s major investments had been expensed and that it was in good shape to capitalise on further growth opportunities.
Responding to issues raised by S&P about the bank’s cost base and the sustainability of its business model, Hunt said Bendigo was confident it had developed a robust, sustainable model.
"Our strategy is to build businesses which generate strong, sustainable revenues and there is now clear evidence this is working. As this occurs, our cost-to-income ratio is trending downwards and we are confident we will achieve our target of 65 percent by June 2005 balance date."
S&P commented on the fact that Bendigo held 40 percent of its loan and deposit book in interstate markets.
In further news, Bendigo’s board has decided to vote in favour of a Scheme of Arrangement for the purchase of 100 percent of Cashcard Australia Limited by First Data Corporation.
The Scheme requires some 75 percent of Cashcard shareholders to approve the deal as well as the Supreme Court’s green light.
Bendigo said it anticipated a one-off, non-operating profit of some $7.6 million before tax.
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