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Adelaide Bank cites portfolio funding as growth engine

Adelaide Bank cites portfolio funding as growth engine

(1 August 2005 – Australia) Adelaide Bank has increased its post tax profit by 23 percent in 2005 to A$80.4 million from A$65.1 million a year earlier. The bank said business lending accounted for 16 percent of its overall profit with the portfolio growing 33 percent over the past 12 months to A$1.57 billion.

Adelaide Bank managing director Barry Fitzpatrick said the business banking division was focusing on aged care, rural lending, commercial property and asset finance.

The bank said it would also focus on portfolio funding, which is the financing of loans, leases and receivables that are originated, credit approved and managed by its partners.

"We have identified an opportunity to build upon our securitisation skills and to provide innovative funding opportunities for a new range of business partners," Fitzpatrick said.

"The national market in this segment is estimated to be around A$200 billion and if we establish a small market share, as we plan, it will have a significant impact on our growth profile," he said.

Adelaide Bank’s retail deposits grew 19 percent to A$9.2 billion in the year to June, contributing 18 percent of profit.

Mortgage lending approvals increased 15 percent to A$9.2 billion with the bank specifically targeting the national broker market.

"The national brokers now represent 17 percent of our approvals, up from only six percent last year," Fitzpatrick said.
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