Bank profits drop
BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.
The State Government has announced a grant of $50,000 to carry out the review.
The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.
Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.
“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.
“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”
Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.
“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,
“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.
“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”
Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.
“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.
“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”
Bendigo Weekly | Bendigo Weekly | 20-Aug-2012 FIRST FOR NEWS
BENDIGO Bank has announced a profit of $195 million in the past financial year, a drop of 43 per cent.
Last year, the bank's profit was $342 million.
Bank managing director Mike Hirst said the past financial year had been a consolidating one for the bank.
"The year for us has been one of consolidation and investment," he said.
"We performed pretty well."
The bank's retail profits rose $2.5 million to $148.5 million.
The share dividend remains at 30 cents per share.
Cash earnings dropped 3.9 per cent to $323 million.
Mr Hirst said the past 12-months had continued to be challenging for all Australian banks.
“Our core revenue generating businesses of retail, third party banking, wealth and rural banking continue to perform well, and we have been determined in our efforts to improve the funding and capital profile of the bank,” he said.
“We have been able to limit net interest margin contraction through prudent and proactive balance sheet management.
"We have sought to price both assets and liabilities in the most appropriate manner for all stakeholders. This has been combined with an active hedging program which, while expensive, has successfully mitigated the risk of significant margin volatility over the period.
“High funding costs and low demand for credit has been felt across the sector, but despite this Bendigo and Adelaide Bank continues to grow and invest in the business.
“Focussing on the bank’s long-term performance and sustainability is central to our strategy and requires us to continually balance the interests of all our stakeholders.
"This strategy has been vindicated by recent credit rating upgrades from Fitch and Standard & Poor’s, and is in stark contrast to the rating momentum of many banks across the globe.
“I would like to thank our customers, staff, partners and shareholders for their contribution to Bendigo and Adelaide Bank’s results.”
The bank’s term deposit retention rates have remained consistently higher than 80 per cent, notwithstanding the bank continuing to adopt a less aggressive pricing structure than many of its competitors.
Retail deposits grew by $2.1 billion over the six months to June 2012, and more than $4 billion over the past year.
Mr Hirst said the outlook for the coming financial year remained difficult to predict, with significant market volatility and revenue challenges facing all banks.
He said funding costs, changing asset mix and demand for credit are all volatile reflecting the global environment.
“Notwithstanding these pressures, Bendigo and Adelaide Bank continues to invest in our business, our people, and the communities we operate in," he said.
"We will work diligently in our efforts to become Australia’s leading customer-connected bank.
“We don’t take for granted our industry-leading customer satisfaction levels, or our industry-leading business customer satisfaction levels.
"And we certainly don’t take for granted our staff engagement levels, which are 2 per cent above the Australian high-performance benchmark.
“We will continue to leverage these strengths, and the strengths of our funding and capital profiles, to take advantage of the significant opportunities that exist for Bendigo and Adelaide Bank."
BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.
The State Government has announced a grant of $50,000 to carry out the review.
The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.
Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.
“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.
“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”
Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.
“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,
“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.
“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”
Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.
“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.
“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”
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