(15 February 2011 – Australia) Bendigo and Adelaide Bank has announced a after tax profit of A$173.9 million for the six months ending 31 December 2010.Cash earnings for the bank were A$162.1 million, representing cash earnings per share of 44.7 cents, an increase of 8.5 percent on the prior corresponding period.
Net interest margin remained relatively stable over the period, increasing one basis point from 2.14 percent to 2.15 percent.
An interim dividend of 30 cents per share fully franked was announced, which is consistent with the board’s policy of paying out 60-70 percent of cash earnings as dividends.
Bendigo and Adelaide Bank Group Managing Director, Mike Hirst, said the result continued the positive trend of successive increases in cash earnings and profit since the effects of the Global Financial Crisis peaked in the June 2009 half-year.
“We have built a sound and profitable banking business, based on the principle of engaging our customers, partners and communities,” Mr Hirst said.
“This is providing our shareholders with a sustainable business committed to growing through providing value and putting our customers and partners first. The business manages its risk and risk appetite appropriately and is well positioned for the future.
“Our balance sheet benefits from the strong support of our retail customers. These customers – through a network of more than 450 branches across Australia, including 260 Community Bank branches – now provide in excess of 90 percent of our total on balance sheet funding.
During the reporting period the bank completed two separate RMBS transactions with a value of A$2.5 billion and also completed the purchase of the remaining 40 percent of Rural Bank.