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Adelaide Bank’s record year built on home lending

Adelaide Bank’s record year built on home lending

(15 June 2004 – Australia) Adelaide Bank has tipped a "record breaking" full year profit built primarily on a 56 percent increase in mortgage loan approvals for the first 11 months of 2003/04. The bank said loan approvals had increased from $6.8 billion so far this year compared with $4.3 billion for the same period a year ago.

"This has resulted in the bank achieving a 24 percent increase in loans under management – well above the target of 15 percent set at the beginning of the year," Adelaide Bank chief executive Barry Fitzpatrick said.

He said the bank would meet the top end of analyst forecasts for its FY2004 profit of between $54 to 58 million.

"We stand by all our previous guidance targets: a minimum growth of 10 percent in earnings per share and underlying earnings, return on equity in excess of 15 percent and a cost to income ratio of less than 56 percent," Fitzpatrick said.

He said the bank’s strong mortgage lending performance was supported by strong contributions from retail funding, business lending and margin lending.

Fitzpatrick said the bank’s lending business, Leveraged Equities, had grown its asset base from $810 million when acquired in February 2000, to $1.4 billion.
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