Bendigo and Adelaide Bank FY Net Profit A$497 Million, Up 1.8% on Year

The Australian regional bank on Monday reported a net profit of 497 million Australian dollars (US$322.9 million) for the 12 months through June, up from A$488.1 million in the previous year. Bendigo said this was impacted by one-off software intangible writedowns and restructuring costs.

Cash earnings–the measure tracked by analysts that adjusts for items the bank considers to be outside its core activities–were 15% higher at A$576.9 million, which the lender said reflected its margin management in response to lending competition, continued growth in deposits and a focus on cost management.

“Our focus on returns and execution is paying off and can be seen with our prudent approach to competing in key lending markets and the return of lending growth over the last quarter,” said Chief Executive Marnie Baker. “Our customer numbers continue to grow.”

Bendigo’s net interest margin rose 20 basis points to 1.94% driven partly by deposit pricing. Bendigo’s Common Equity Tier 1 capital ratio, a key measure of a bank’s ability to withstand financial shocks, was 11.25%, up 157 basis points.

Directors of the company declared a dividend of 32.0 Australian cents per share, compared to 26.5 Australian cents last year.

Consensus forecasts compiled by FactSet projected Bendigo’s full-year net profit would be A$530 million.

Write to Alice Uribe at [email protected]