LOGIN JOIN SHARECAFE SIGN UP FOR OUR NEWSLETTER ADVERTISE
share cafe logo  
 
SHARECAFE COMMENTARY

Bendelaide Lifts Cash Earnings, NIM
BY GLENN DYER - 13/02/2018 | VIEW MORE ARTICLES BY GLENN DYER

Get More Commentary, Discussion & Market Information On -

BEN - BENDIGO AND ADELAIDE BANK LIMITED


Bendigo and Adelaide Bank has joined the larger Commonwealth Bank in boosting its net interest margin for the first time in years for the six months to December.

The regional bank reported a 10.7% jump in cash earnings compared to the previous first half to $225.3 million, short of market forecasts around $236 million.

Shareholders got their cut from the higher result and fatter margins - the interim dividend was lifted to 35 cents a share from 34 cents.

Bendigo said its net interest margin rose 18 basis points to 2.36% the CBA lifted its margin 6 points to 2.16%) due to mortgage repricing.

Like other banks, Bendigo raised interest rates for investor borrowings (interest only especially) in the wake of the Australian Prudential Authority’s tighter rules last year.

Over the first half, growth in total housing lending up 0.7% for the half., helping total income rise 6% to $843 million. Despite that the shares fell 2% to $11. The shares, like those of other banks were hit by the impact of the banking royal commission’s first day yesterday.

“This improvement obviously reflects mortgage repricing in response to regulatory caps on interest only and investor lending, as we sought to restrict growth in those products," said Managing Director Mike Hirst.

“The bank experienced strong growth in loans to home owner occupiers in an environment where competition for those customers remains fierce,” Hirst said by way of example. “While lending to home investors was curtailed by caps applied by APRA, all other metrics indicate that we are fulfilling our customers’ needs by providing a premium banking experience.”

“The bank experienced strong growth in loans to home owner occupiers in an environment where competition for those customers remains fierce," Mr Hirst said.

Bad debts were up $6.5 million, or 16.3%, with the increase driven by provisions raised for commercial exposures.



View More Articles By Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.



 

RECENTLY ADDED TO SHARECAFE


 › Marcus Today End Of Day Report
 › Friday At The Close
 › Beats and Misses
 › Bitcoin No Replacement For Gold
 › Is The Bear Out Of Hibernation?
 › Warren Buffett's Latest Portfolio Reshuffle
 › Australian's Love Affair With Debt - How Big Is The Risk?
 › Market At Midday On Friday
 › Not One, Not Two, But Three For Dacian As First Gold Production Looms
 › Next Week At A Glance
 › Overnight: The Big 'V'
 › Amazon Disruption Continues
 › What Lies Ahead For The Big Bank Stocks?
 › Is Solomon Lew Gaslighting The Aussie Market?
More ShareCafe   

GET THE SHARECAFE BREAKFAST BRIEFING


Delivered free to your inbox before the market opens each trading day. Sign up below +

SHARECAFE VIDEO


View More Videos