Bendigo full-year net profit up 41%
(9 August 2011 – Australia) Bendigo and Adelaide Bank has reported a big profit jump in full-year net profit, but expects the market to remain volatile in the period ahead.
The bank reported net profit for the 12 months June 30, 2011, came in at A$342.1 million, up 41 percent from the prior corresponding period.
Bendigo and Adelaide Bank managing director Mike Hirst said in a statement "the result shows that support is being returned to the bank, and augurs well for our earnings outlook and availability of funding in a market that we expect to remain volatile."
Cash earnings increased 10.8 percent to A$336.2 million, the Bendigo-based bank said in a statement on Monday.
Bendigo and Adelaide Bank said its net interest margin for the year to June 30 was 2.17 percent, up five basis points from 2.12 in the previous corresponding period.
Funding conditions have been and are expected to remain tight, the bank says, but management is confident in its ability to raise and retain deposits.
Term deposits retention rates were consistently greater than 80 percent in the year to June 30, despite a less aggressive pricing strategy than the bank’s competitors, it said.
Retail deposits increased 8.9 percent over the year to A$3 billion. Business arrears were 2.49 percent in June, while credit card and personal loan arrears fell in the year to June.
Arrears attributed to natural disasters in Victoria and Queensland were mostly confined to Bendigo and Adelaide Bank’s Rural Bank subsidiary.
Costs rose 3.7 percent to A$767.3 million, due to higher salaries and bonuses, plus the additional stake in Rural Bank.
Bendigo and Adelaide Bank managing director Mike Hirst said in a statement "the result shows that support is being returned to the bank, and augurs well for our earnings outlook and availability of funding in a market that we expect to remain volatile."
Cash earnings increased 10.8 percent to A$336.2 million, the Bendigo-based bank said in a statement on Monday.
Bendigo and Adelaide Bank said its net interest margin for the year to June 30 was 2.17 percent, up five basis points from 2.12 in the previous corresponding period.
Funding conditions have been and are expected to remain tight, the bank says, but management is confident in its ability to raise and retain deposits.
Term deposits retention rates were consistently greater than 80 percent in the year to June 30, despite a less aggressive pricing strategy than the bank’s competitors, it said.
Retail deposits increased 8.9 percent over the year to A$3 billion. Business arrears were 2.49 percent in June, while credit card and personal loan arrears fell in the year to June.
Arrears attributed to natural disasters in Victoria and Queensland were mostly confined to Bendigo and Adelaide Bank’s Rural Bank subsidiary.
Costs rose 3.7 percent to A$767.3 million, due to higher salaries and bonuses, plus the additional stake in Rural Bank.
Subscribe