Bendigo and Adelaide Bank saw a substantial 13% rise in their half-year net profit, reaching 282.3 million Australian dollars (US$184.34 million) for the six months ending in December. This exceeded analyst expectations, surpassing the FactSet-compiled poll estimate of A$257 million.
Strong Revenue Growth and Margins Under Pressure
The Australian regional bank also reported a 14% increase in half-year revenue, totaling A$1.03 billion. However, the net interest margin of the bank, reflecting the impact of price competition in lending and deposits, experienced a decrease to 1.83%. This decline of 15 basis points attributed to competitive pressures in the market.
Focus on Long-Term Value
Despite challenges in interest rates and competitive landscapes in loans and deposits, Chief Executive Marnie Baker emphasized the bank's commitment to managing the business for long-term value. Strategies included pre-funding Term Funding Facility repayments, protecting margins, controlling expense growth, and enhancing productivity initiatives.
Dividend Announcement
The company's directors approved a dividend of 30.0 Australian cents per share, an increase from 29 cents paid as an interim dividend last year.
These results demonstrate Bendigo and Adelaide Bank's resilience amidst market pressures, highlighting their strategic approach to balancing short-term challenges with long-term success.
