Home loan market slowing, Bendigo says
(1 November 2005 – Australia) Bendigo Bank said demand for housing loans has slowed over the first three months of the 2005/6 financial year but reaffirmed its cash earnings per share forecast of about 10 percent.
Speaking at the regional bank’s annual general meeting, chairman Richard Guy said he expected to continue the "progression in growth and profitability that we have seen in recent years".
"As far as market conditions today are concerned, we have seen some slowing in demand for housing loans but certainly nothing that alarms us," he said.
Guy said the bank had decided not to go down the low-doc lending path, unlike other Australian commercial banks.
"While this may cost us some short term growth, it might also save us some long term pain," he said.
Guy said Elders Rural Bank, which is a joint venture between Bendigo and Futuris Corporation, was starting to benefit from synergies between the two branch networks.
"We are optimistic about the future growth prospects of this venture, particularly since it has grown strongly and maintained first class credit quality during a prolonged drought," he said.
During the AGM, Guy announced his retirement as chairman of Bendigo after 19 years.
He will stand down in March 2006 to be replaced by current deputy chairman Robert Johanson.
"As far as market conditions today are concerned, we have seen some slowing in demand for housing loans but certainly nothing that alarms us," he said.
Guy said the bank had decided not to go down the low-doc lending path, unlike other Australian commercial banks.
"While this may cost us some short term growth, it might also save us some long term pain," he said.
Guy said Elders Rural Bank, which is a joint venture between Bendigo and Futuris Corporation, was starting to benefit from synergies between the two branch networks.
"We are optimistic about the future growth prospects of this venture, particularly since it has grown strongly and maintained first class credit quality during a prolonged drought," he said.
During the AGM, Guy announced his retirement as chairman of Bendigo after 19 years.
He will stand down in March 2006 to be replaced by current deputy chairman Robert Johanson.
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