(14 February 2005 – Australia) Bendigo Bank has posted a post tax profit of A$42.8 million for the six months to December 31, 2004, a 24 percent jump on the previous year’s figure.The community bank has also announced it is looking to raise A$100 million in a share issue and an on-market buyback of up to five million shares.
Bendigo has been supported in its quest by ratings agency Standard & Poor’s which has upgraded the bank’s credit ratings.
Bendigo chairman Richard Guy said the capital initiatives were intended to improve earnings per share.
He said the interim result confirmed that Bendigo Bank’s retail banking expansion continued to produce excellent growth and profit improvement.
“We also continue to see growing contributions from our alliances such as Elders Rural Bank, Tasmanian Banking Services and Community Sector Bank,” Guy said.
“Our funds management business is benefiting from our growing distribution network and is rapidly increasing its scale and contribution to profit.”
S&P Financial Services credit analyst Michael Vine said Bendigo’s capitalisation had increased materially and that the bank had improved its geographic diversity.