(17 December 2004 – Australia) Adelaide Bank grew its business lending portfolio to A$1.18 billion in financial year 2004, up nine percent on the previous year.In an interview lodged on the ASX website, Adelaide Bank chief executive Barry Fitzpatrick explained his strategy for growing the bank’s share of the A$406 billion business lending market.
He said the bank would continue to focus on its South Australian business while developing niche markets interstate.
One of these niche markets is aged care, which regional and major banks have increasingly turned their attention to during 2004. Others include rural and structured finance.
“We believe those niche markets will provide ample opportunity for growth. We will not be expanding into segments of the business banking market where we believe we don’t have the expertise,” Fitzgerald said.
Adelaide Bank posted a net profit after tax of A$68.2 million for 2004, a return on equity of 17.6 percent and EPS growth of 17.3 percent.
Fitzpatrick said 2005 was so far tracking above expectations, driven by strong growth in assets.
He said the bank was sustaining growth in the housing market despite a softening of demand and currently held two percent market share of the A$603 billion mortgage market.