(29 October 2007 – Australia) Bendigo Bank has confirmed that its merger with fellow regional Adelaide Bank will result in a larger and stronger business and said the bank would hit its standalone earnings targets this financial year.Adelaide Bank shareholders are yet to vote on the proposed merger and will do so at a meeting on 12 November.
Speaking at Bendigo’s annual general meeting, chairman Robert Johanson said the merger with Adelaide would continue to grow and deliver value to the shareholders whilst retaining its core values.
He said Bendigo Bank in its current shape was the result of more than 15 mergers and acquisitions over the past 25 years.
Johanson assuaged shareholder concerns over the current credit crisis, saying the credit quality of the bank’s assets was extremely high.
However, he said it had impacted the bank’s margin due to the increased cost of wholesale funding sources.