Profits dip for Bendigo Bank

Bendigo Bank's annual profits report has revealed a dip in profits and a flat return for shareholders.

The bank announced an after tax profit of $195.0 million for the 12-months ending June 30, 2012, down 43 per cent compared with last year's $342.1 million result

The full year results showed a final dividend of 30 cents per share (fully franked), which is flat on the prior corresponding period.

Cash earnings were $323.0 million, a decrease of 3.9 per cent on the prior corresponding period.

Contributing to the profit slump was a $95 million write-down in the value of the bank's wealth management operations.

Bendigo and Adelaide Bank managing director Mike Hirst said it was very much in line with market expectations and continued trends shown from other banks’ profits reports.

He said the past 12-months had been “challenging for all Australian banks”.

"High funding costs and low demand for credit has been felt across the sector, but despite this Bendigo and Adelaide Bank continues to grow and invest in the business," Mr Hirst said.

Operating expenses were kept low, growing by just 1.1 per cent over the period, excluding the purchase of the Bank of Cyprus Australia.

Mr Hirst said the bank’s rural banking, and other core revenue generating businesses had continued to perform well.

“We’ve got a very strong balance sheet, a real point of difference around our business and supportive customers and staff.”

Mr Hirst said the outlook for the coming financial year remained difficult to predict, with significant market volatility and revenue challenges facing all banks. 

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