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Bendigo and Adelaide Bank saw its statutory profit after tax rise 1.1% to $434.5m during fiscal year 2017-2018, according to the firm’s latest financial results.
The rise comes amid a 6.4% rise in underlying cash earnings to $445.1m, and solid earnings growth across the Local (6.4%) and Partner (21.8%) segments in what managing director Marnie Baker described as a “highly competitive” lending market.
“Margin performance was strong, up 14 basis points for the financial year, with a margin of 2.36 percent, driven in part by a disciplined approach to asset and liability pricing,” Baker added. The senior executive said about 80.2% of the bank’s funding comes from Retail customers, which indicates the strength of its business in an environment where volatility and disruption will continue.
“Our current capital position continues to be a highlight, with Common Equity Tier 1 Capital growing 35 basis points since June 2017. This means we continue to be extremely well-placed to meet APRA’s unquestionably strong capital benchmarks. Our organic capital growth reflects strong profitability, stable balance sheet and a move to lower risk exposures,” Baker added.
With regard to the Royal Commission, Baker sees it as an opportunity, despite her belief that no bank is immune from the heightened scrutiny. She stressed Bendingo and Adelaide Bank’s recognition as Australia’s most trusted bank – and third most trusted brand – in the Roy Morgan Net Trust Score.
“The time for our bank is now. Our strategy is to focus on the success of our customers, people, partners and communities to be Australia’s bank of choice. Our history of delivering and innovating, and the uniquely nimble composition of our business, will ensure shared success through our strategic partnering mindset,” she added.
