Margins under pressure Bendigo warns
(26 October 2004 – Australia) The chairman of Bendigo Bank has warned shareholders to expect to see some pressure on margins while competition in Australia’s banking sector rages fiercely.
Speaking at the bank’s annual general meeting, chairman Richard Guy said the strength of the Bendigo Bank brand had enabled it to maintain healthy margins so far this year.
But despite the buoyant economy, he doubted that current debt levels were sustainable.
"There is market speculation about possible interest rate adjustments and rising oil prices have added to speculation about the economy," Guy said.
He said the bank had attempted to counter this by adjusting its balance sheet, with provisioning remaining strong and credit practices prudent, while bad debts had fallen to their lowest level.
Bendigo posted a net profit of A$79.8 million for financial year 2004, a 35 percent increase on the 2003 figure.
But despite the buoyant economy, he doubted that current debt levels were sustainable.
"There is market speculation about possible interest rate adjustments and rising oil prices have added to speculation about the economy," Guy said.
He said the bank had attempted to counter this by adjusting its balance sheet, with provisioning remaining strong and credit practices prudent, while bad debts had fallen to their lowest level.
Bendigo posted a net profit of A$79.8 million for financial year 2004, a 35 percent increase on the 2003 figure.
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