Finance Finance News Bendigo Bank profit above estimates

Bendigo Bank profit above estimates

Bendigo and Adelaide Bank.
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Bendigo and Adelaide Bank has increased its full year profit 5.7 per cent after lifting revenue and margins.

The company made a full year profit of $372.3 million for the year to June 30, up from $352.3 million a year ago.
Underlying cash earnings were up 9.9 per cent to $382.3 million. This was ahead of market expectations with analysts forecasting growth of just 8 per cent.

Shares in the company were up after the announcement at 27 cents, or 2.22 per cent, at $12.45 at noon Monday.

Bendigo announced a fully-franked final dividend of 33 cents, which takes its full-year dividend to 64 cents, up from 61 cents a year ago.

Bendigo lifted its net interest margin five basis points to 2.24 per cent during the year while new loan approvals increased 16 per cent, taking total loans under management to $53.98 billion.

Total income from ordinary activities was up more than six per cent to $1.43 billion.

Managing director Mike Hirst said the banks had focused on managing its balance sheet and margins.

“A five basis point increase in net interest margin is testament to the Banks value proposition in what is a highly competitive environment,” he said.

“We do not pursue growth for growths sake.”