Bendigo and Adelaide Bank has posted an after tax profit of $242.6m for the 12 months ended June 30, 2010, a 190% improvement on the prior corresponding period. Cash earnings were $291m, an increase of 60%.
Net interest margin rebounded strongly to average 2.09% for the year, up from 1.66% in the prior corresponding period.
Mike Hirst, managing director of Bendigo and Adelaide Bank Group, said: “We have delivered a strong result, and we have done it while fundamentally re-structuring the business to ensure it is sustainable and self sufficient through the business cycle.
“Our shareholders are starting to reap the benefits of our prudent and responsible approach to funding and growth. Our business lending, residential mortgage and consumer lending portfolios all have strong growth momentum and are currently exceeding system growth4. The fundamentals in our retail, margin lending and third-party mortgages businesses also remain robust.”
In conjunction, Bendigo and Adelaide Bank has also signed a heads of agreement, to purchase 24% of Linear Asset Management.
Mr Hirst said: “We gain access to a proprietary information technology system, and new generation independent platform which is experiencing solid growth. This provides an ideal opportunity to leverage our retail and third party wealth distribution channels, and is a significant development for the group’s wealth strategy.”