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Bendigo and Adelaide Bank was hopeful of levelling the playing field with the major banks as it released its interim results.
Speaking to the results on Monday, managing director Mike Hirst said the bank was working towards Advanced Accreditation.
“We know this important step will mean our bank can operate on a level playing field with major banks, something we haven’t been able to do for some time,” Mr Hirst said.
He described the ongoing process as a “significant investment” but said it had improved the bank’s risk management capability and how it served its customers.
“While the timing for this remains in the future, we look forward to the increased choice Australians will have as a result of levelling the field for ourselves and others going through the process,” he said.
Mr Hirst said the bank was in a strong position, reporting a $209 million after tax statutory profit for the final half of 2016.
“The bank has seen good growth over the last six months and that growth, of course, means the community benefit of having the bank in town can be sustained,” he said.
“From the bank’s point-of-view, it’s in a really strong position.”
Underlying cash earnings for the six months to December 31 increased by 0.4 per cent, to $224.7 million, while cash earnings per share were 48 cents, a 0.9 cent decrease.
The final fully franked dividend of 34 cents per share was flat on the prior half year period, the bank said.
A 2.5 percent discount for shares issued under both the Dividend Reinvestment Plan and Bonus Share Scheme has been announced.
Top growth areas included lending across retail and partner channels, while Mr Hirst identified the bank’s industry lending funding position as a “particular strength”.
However, he conceded the share price was a “little bit down” following the results.
The bank’s shares slid almost 5 per cent after the announcement, the Sydney Morning Herald reported.
The shares were down 63 cents to $12 at close.