Bendigo Bank comfortable despite downturn

Bendigo Weekly | Bendigo Weekly | 20-Feb-2012

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The Bendigo and Adelaide Bank has announced a six-montlhy result that "should provide comfort" to customers, despite a 66 per cent downturn in net profit.

 

The Half Year Report for the six months ending December 31, 2011, shows an after tax statutory profit of $57.9 million, down from $168.2m for the previous six months.

 

Despite the drop, the bank recorded cash earnings of $162.6m, a slight increase on the previous period. 

 

"The cost of all funding channels has increased markedly over the past six months," Bendigo and Adelaide Bank managing director MIke Hirst said.

 

He warned that the next six months would be volatile for the finance sector, with funding costs, and demand for credit uncertain in the global market.

 

"While the future impact of these factors is difficult to predict, there is much about our business that should provide comfort to our investors," Mr Hirst said.

 

He said the Bank's model of "customer engagement" has generated sustainability.

 

"The success of this model, built on customer engagement, is demonstrable," Mr Hirst said.

 

"We have achieved above system mortgage growth, fund 77 per cent of our lending through retail deposits and, with our community partners, have now provided more than $88m in community grants and dividends."

 

Mr Hirst said the bank is not planning job cuts.

 

He has also suggested there is light at the end of the tunnel for the financial sector. 

 

Speaking at an analyst briefing, he said, "it might be that things are starting to turn around a little bit."

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