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By: Belinda Luc
Bendigo and Adelaide Bank has delivered a surge in after tax profit of $242.6 million for the year ended June 2010 – up 190 per cent from the previous financial year.
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Bendigo and Adelaide Bank group managing director Mike Hirst said the bank’s prudent and responsible approach to funding and growth had been the key driver behind the profit growth.
“Our business lending, residential mortgage and consumer lending portfolios all have strong growth momentum and are currently exceeding system growth," Mr Hirst said today.
"The fundamentals in our retail, margin lending and third party mortgages businesses also remain robust.”
According to Mr Hirst, the bank still funds the majority of its business through retail deposits.
“We have not relied on the government guarantee on wholesale funding and have been able to launch three highly successful residential mortgage-backed securities transactions in the past 7 months – raising more than $3.5 billion,” he said.
Looking forward, Mr Hirst said volatility and uncertainty were still a concern for the global economy.
"The effects of the GFC continue to dominate market sentiment, and will likely cloud the outlook for the 2010-2011 financial year."
"However, this uncertainty and volatility also presents opportunities for a business like ours with a respected brand, growing customer base and proven track record for opportunistic and value creating M&A activity. All this complemented by a well-funded and low risk balance sheet,” he said.
