(2 February 2007 – Australia) Elders Rural Bank has announced a net first half profit of A$16.4 million compared with A$13.2 million for the same period a year earlier.The bank said loans as at the end of December 2006 sat at A$2.88 billion, up 16 percent on the previous year. Deposits grew 16 percent to A$2.92 billion.
Elders chief executive Paul Hutchinson said the business had performed well despite the highly competitive environment and the impact of drought on regional customers.
He pointed to wider take up of services as the driver for Elder’s profit increase.
‘Through our network of rural and regional financial specialists, the bank has first-hand understanding of the challenges faced by our customers and their strategies for dealing with events such as drought. As a result we are able to identify potential challenges early and work with clients on solutions,’ he said.
‘The effectiveness of this business model has been evident in the strong credit performance achieved by the bank.’
Elders is a joint venture between Futuris Corporation and Bendigo Bank.