Bendigo Bank scraps upbeat forecasts as coronavirus reality plays out

The bank has withdrawn forecasts made in February that it could capitalise on employment growth, low Reserve Bank of Australia cash rate and the steady recovery of the housing market.

Back then, Australia's fifth largest bank considered COVID-19 just one of many issues it would need to navigate as it prepared to give out more money for mortgages, its small business portfolio to grow and its commercial real estate business to expand.

Coronavirus was something Bendigo Bank considered could have long-term impacts, much like droughts and the summer's bushfires.

"We expect our mortgage lending growth rates to continue to exceed system, our small business portfolio to continue to grow at similar rates and our Commercial Real Estate business to grow," managing director Marnie Baker said at the time.

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But the pandemic has proven too unpredictable for her bank to stick to any forecast, she said in a statement to the ASX this morning.

The bank has told investors its balance sheet remains strong, thanks in part to a share float earlier this year that bolstered its finances.

It reaffirmed it would keep bankrolling assistance packages it has begun for people and businesses hit hard by the pandemic and social distancing restrictions.

"Our commitment has always been to support our customers and their communities through both the good times and tougher times," Ms Baker told the ASX.

"We are open for business and as an essential service, it is vital we provide out customers with the dedicated and necessary support they need."

Ms Baker was not available to talk this morning, but two weeks ago told the Bendigo Advertiser she was confident her bank could weather the storm and help prop up the economy.

"Going through the Global Financial Crisis, the things that were put in place afterwards and the lessons that were learnt, meant banks became a lot more capitalised and now have much stronger funding positions," she said.

"We've probably never been better positioned to go into a health crisis like this."

More from that interview: Bendigo's winners and losers as coronavirus hits the economy

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