When sharing its full year results for the period ending 30 June 2020, Bendigo and Adelaide Bank highlighted the “record levels” of growth in total lending as one of the standouts from a year marked by environmental challenges.
While the group reported a statutory net profit of $192.8m, down 48.8% and largely attributable to COVID-19 provisions, the bank also achieved an increase in total lending of 5.1% year on year, resulting in a loan book of $65.3bn. The growth was largely driven by residential lending which was up 9.4% year on year and 3.6x system.
“Our Consumer Banking division continued to outperform system with strong growth in residential lending ($3.1bn), underpinned by our strategy and driven by investment in lending distribution and processing capacity,” said Bendigo and Adelaide CEO and MD Marnie Baker.
“We saw increased refinancing activity as customers moved to our bank and we continued to transform our service proposition and ability to meet demand.
"Lending applications increased 50.3% and settlements 18% on the prior corresponding period. The division also recorded $3.9bn growth in call deposits, allowing active management of more expensive term deposit funding.”
According to Baker, the events of 2020 have not changed the bank’s strategy, but rather accelerated its need to execute the transformation the group detailed last year with the foremost emphasis placed on ramping up the bank’s tech capabilities.
“We have demonstrated success by growing in key priority markets, supported by our investment strategy. This has resulted in additional staff costs to support above system lending growth,” she explained.
“Looking ahead, we are accelerating the transformation of our cost base by investing in automation initiatives and new capability to improve operational efficiency, customer outcomes and experience.”
Baker also highlighted the group’s net promotor score of 32.1 – 33.1 higher than the industry average and 35.6 higher than the average of the big four.
“We consistently rank in Australia’s top 10 most trusted brands - improving one place in April during Australia’s first restrictions - and amongst the top-rated companies for customer experience,” she said.
“Our distinctive strengths - a deep human and community connection grounded in purpose, partnering capability and high trust - continue to provide customer value and growth opportunities for our bank.”
The group plans to carry this personal touch into providing customers tailored arrangements upon the termination their COVID-19 deferral periods; at the year’s end, the bank had supported more than 25,000 personal and business accounts in managing the impacts of the pandemic.
“We expect market conditions to remain challenging and because of this we are unable to provide meaningful guidance for FY21,” said Baker.
“We continue to focus on maintaining a strong and resilient balance sheet supported by our growth and clear transformation strategy.
“As Australia’s most trusted bank, supporting customers for more than 162 years, we bring proven capability to adapt over time. We will continue to act with integrity and with customers and communities at the centre as we progress our vision to be Australia’s bank of choice,” she concluded.
