Adelaide Bank’s numbers head north
(Australia) Adelaide Bank has posted a 24 percent increase in net profit for FY 2003 on the back of record home lending, improved margins and lower cost ratios.
The result surpassed analysts’ expectations with the bank delivering underlying earnings of $84.60 million, a 22 percent increase on the previous year’s result.
Post-tax profit was $51.33 million compared with $41.24 million in 2001/02, while pre-tax profit was $74.28 million compared with $61.27 million last year.
Adelaide Bank chairman Dick McKay said the results had been achieved in a "year of strong competition".
"Importantly, the Bank has continued the execution of the growth strategies put in place over four years ago and re-endorsed in 2002, while fulfilling its key commitments to shareholders," he said.
"As a result, the Adelaide Bank Board has approved a fully franked Final Dividend Payment to shareholders of 21 cents – an increase of three cents over the final dividend for last year," McKay said.
CEO Barry Fitzpatrick said all sectors of the bank’s operations had significantly contributed to bottom line profit.
"Leading the way has been our mortgage lending business which increased loan approvals by 22 percent to $5.3 billion during 2002-03. This followed an increase of more than 60 per cent during the previous financial year, off a much lower base," he said.
"The increase saw Adelaide Bank move from 2.1 percent of national loan approvals to 2.3 percent over the year. Growth was largely driven by home lending, with the home loan portfolio increasing from $7.06 billion to $8.50 billion, a rise of 21 per cent," Fitzpatrick said.
Post-tax profit was $51.33 million compared with $41.24 million in 2001/02, while pre-tax profit was $74.28 million compared with $61.27 million last year.
Adelaide Bank chairman Dick McKay said the results had been achieved in a "year of strong competition".
"Importantly, the Bank has continued the execution of the growth strategies put in place over four years ago and re-endorsed in 2002, while fulfilling its key commitments to shareholders," he said.
"As a result, the Adelaide Bank Board has approved a fully franked Final Dividend Payment to shareholders of 21 cents – an increase of three cents over the final dividend for last year," McKay said.
CEO Barry Fitzpatrick said all sectors of the bank’s operations had significantly contributed to bottom line profit.
"Leading the way has been our mortgage lending business which increased loan approvals by 22 percent to $5.3 billion during 2002-03. This followed an increase of more than 60 per cent during the previous financial year, off a much lower base," he said.
"The increase saw Adelaide Bank move from 2.1 percent of national loan approvals to 2.3 percent over the year. Growth was largely driven by home lending, with the home loan portfolio increasing from $7.06 billion to $8.50 billion, a rise of 21 per cent," Fitzpatrick said.
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