BENDIGO BANK PROFIT DOWN AMID TOUGH COMPETITION AND LOW INTEREST RATES

Written on the 8 August 2016

BENDIGO BANK PROFIT DOWN AMID TOUGH COMPETITION AND LOW INTEREST RATES

BENDIGO and Adelaide Bank (ASX:BEN) made a statutory profit of $415.6 million for the 12 months to 30 June, 2016, down 2 per cent on the previous year, it announced today.

The bank was able to deliver a half on half increase of one basis point on its net interest margin, to 2.17 per cent and underlying cash earnings were $439.3 million, up 1.6 per cent on the prior corresponding period.

The low interest rate environment has impacted loan growth in a competitive market, while customers are reducing debt and paying off loans ahead of time.

Retail deposits were up 8 per cent for the year, helping the bank achieve 82 per cent of its funding through retail customers. Total deposit growth was up 7.3 per cent in the second half of FY16.

Managing Director, Mike Hirst, says that with the Basel III common equity tier 1 ratio standing at 8.09 per cent, and total capital at 12.21 per cent, 'we have ample capital to grow our business organically'.

"Our bank's strong capital, funding and credit position means our outlook remains extremely positive. We're targeting flat cost growth for the 2017 financial year and our focus on the success of our customers and strategies to deliver balance sheet growth means our bank continues to be well placed for growth and the challenges ahead."

The bank's final fully franked dividend of 34 cents per share lifts the full-year dividend by 2 cents, to 68 cents per share.

The bad and doubtful debts charge was $44.1 million, down 35 per cent on the previous year.

BEN shares were trading up 2.67 per cent, at $9.990 per share at the time of writing.


Latest News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

TECHNOLOGYONE OUTSTRIPS PROFIT EXPECTATIONS AS R&D SKYROCKETS

TECHNOLOGYONE (ASX: TNE) has surpassed market expectations to achieve a half-year profit after tax of $8.1 million, u...

CLASS ACTION FILED AGAINST SURFSTITCH AFTER ANOTHER EARNINGS WIPEOUT

AS ONLINE retailer SurfStitch (ASX: SRF) battles for survival following another negative earnings forecast, a $100 mi...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

Related News

THE COMPANY THAT DECIDED IT WAS GOING TO GIVE A CRAP THANKS TO CROWD FUNDING

SIMON Griffiths is using toilet paper to save the world.

In 2012, on the back of an IndieGoGo crowdfunding campaig...

SURFSTITCH DOWNGRADES EARNINGS AS SHARES PLUNGE 25 PER CENT IN A DAY

TROUBLED online sports clothing retailer SurfStitch is considering selling off more of its assets and will close i...

AUSCANN RESUMES TRADE AFTER $12 MILLION CAPITAL RAISING

IT'S BEEN a big few days for medical cannabis manufacturer AusCann (ASX: AC8), as the company emerged from a trad...

APN AND oOh!media MERGER CALLED OFF, CEO 'AMAZED' AT ACCC'S DECISION

THE PROPOSED $1.6 billion merger between Australia's two largest advertising groups, APN (ASX: APO) and oOh!me...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter