Bendigo/Adelaide profit jumps 40%
(12 August 2008 – Australia) The newly merged Bendigo and Adelaide Bank has recorded a full year net profit of $170.5 million, up 40 percent on last year.
Bendigo and Adelaide Bank has announced an after-tax profit of $170.5 million for the 12 months ending 30 June 2008.
The results include a significant boost of seven months of results from operations that previously came from the Adelaide Bank business.
Even so, the bank performed well in earnings per share. Cash earnings per share exceeded guidance by 1.0 percent, for a total growth of 13.0 percent, to 93.7 cents per share.
The addition of Adelaide bank had both positive and negative influences on costs. The cost to income ratio improved over the period from 64.6 per cent to 59.6 per cent. This improvement was due to a combination of Adelaide Bank’s lower cost wholesale model.
Conversely, operating expenses before significant items grew by 35.2 percent. This was due mainly to higher salary costs from an additional 1140 full time equivalent staff through the merger.
Bad and doubtful debt expenses grew to $25.7 million, which was an increase of $16.9 million since 2007. This was due to a 174.7 per cent increase in group loans under management (predominantly as a result of the merger with Adelaide Bank).
The bank announced a final dividend of 37 cents per share (fully franked), taking the full dividend paid for the financial year to 65 cents – an increase of 12.1 percent on the prior corresponding period.
The results include a significant boost of seven months of results from operations that previously came from the Adelaide Bank business.
Even so, the bank performed well in earnings per share. Cash earnings per share exceeded guidance by 1.0 percent, for a total growth of 13.0 percent, to 93.7 cents per share.
The addition of Adelaide bank had both positive and negative influences on costs. The cost to income ratio improved over the period from 64.6 per cent to 59.6 per cent. This improvement was due to a combination of Adelaide Bank’s lower cost wholesale model.
Conversely, operating expenses before significant items grew by 35.2 percent. This was due mainly to higher salary costs from an additional 1140 full time equivalent staff through the merger.
Bad and doubtful debt expenses grew to $25.7 million, which was an increase of $16.9 million since 2007. This was due to a 174.7 per cent increase in group loans under management (predominantly as a result of the merger with Adelaide Bank).
The bank announced a final dividend of 37 cents per share (fully franked), taking the full dividend paid for the financial year to 65 cents – an increase of 12.1 percent on the prior corresponding period.
Subscribe