BENDIGO and Adelaide Bank has posted a 7.7 per cent jump in its cash profits for last financial year in a “solid result for shareholders”.
Cash earnings per share increased in the 12 months to June 30, 2013 lifting to 85.4 cents per share.
Managing director Mike Hirst said the profits would mostly go to paying dividends to shareholders.
“The rest of it gets reinvested in the business or investing in technology, such as mobile banking platforms.”
Mr Hirst declared it a “solid result” and said it reflected the bank’s strong capital position.
“Shareholders should be pleased with the reception,” he said.
Mr Hirst said profits had bounced back following previous years’ writedowns that were largely fuelled by the global financial crisis.
He said he was pleased with the results that came amid ongoing uncertainty in the banking sector.
“Consumer confidence and demand for credit remains low, and competition remains very strong for retail deposits,” Mr Hirst said.
“Despite this we have been able to produce a result that shows improvement in a range of profitability and efficiency measures – including net profit, cash earnings, net interest margin, dividend, earnings per share, return on equity and cost to income ratio.”
The bank also announced an increase in the final dividend to 31 cents per share – an increase of 3.3 per cent on the previous six months – taking the full-year dividend to 61 cents per share.
Mr Hirst said the banking sector remained an uncertain market.
“While we expect to see relatively subdued credit growth in the coming 12-months, we remain confident that the unique Bendigo and Adelaide Bank business model will continue to resonate with customers,” Mr Hirst said.
“We will continue to leverage our unique strengths to take advantage of the significant opportunities that exist for our business.”
Mr Hirst said shareholders and customers could expect the bank to continue to invest in its people and distribution footprint in preparation for an eventual improvement in business conditions.