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

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter