Profit rise for Elders Rural
(9 February 2009 – Australia) Elders Rural Bank has managed a 15.5 percent rise in profit for the final six months of 2008.
The small rural bank, co-owned by Bendigo and Adelaide Bank Limited and Futuris
Corporation, managed a half year Net Profit after tax of $22.4 million.
This was an increase in net profit of 15.5 percent, up from $19.4 million a year earlier.
Perhaps the most significant result for Elders was the increase in deposit base. The rural bank now has deposits well over the amount of loans under its management.
Deposits grew by 18 percent to be $4.015 billion while Elders has loans under management of $3.689 billion, up 9 percent.
Compared with last year, Elders is now in a steadier position with deposits around 10 percent greater than loans. Last year, Elders had $3.377 billion of loans and $3.395 billion in deposits.
Retail deposits continue to represent over 90 percent of Elders Rural Bank’s funding base.
Elders Rural Bank maintained its record of strong credit performance despite mixed seasonal conditions. The bank’s ratio of net non-performing loans to gross loans under management improved to 0.35 percent from 0.36 percent.
The bank’s credit policy coupled with its proximity and segment-based knowledge of the rural sector continue to be important factors in limiting the impact of drought conditions on its financial performance, chief executive officer, Paul Hutchinson said.
Corporation, managed a half year Net Profit after tax of $22.4 million.
This was an increase in net profit of 15.5 percent, up from $19.4 million a year earlier.
Perhaps the most significant result for Elders was the increase in deposit base. The rural bank now has deposits well over the amount of loans under its management.
Deposits grew by 18 percent to be $4.015 billion while Elders has loans under management of $3.689 billion, up 9 percent.
Compared with last year, Elders is now in a steadier position with deposits around 10 percent greater than loans. Last year, Elders had $3.377 billion of loans and $3.395 billion in deposits.
Retail deposits continue to represent over 90 percent of Elders Rural Bank’s funding base.
Elders Rural Bank maintained its record of strong credit performance despite mixed seasonal conditions. The bank’s ratio of net non-performing loans to gross loans under management improved to 0.35 percent from 0.36 percent.
The bank’s credit policy coupled with its proximity and segment-based knowledge of the rural sector continue to be important factors in limiting the impact of drought conditions on its financial performance, chief executive officer, Paul Hutchinson said.
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