Bendigo and Adelaide Bank posts a cash profit 7.7% above last year

Bendigo and Adelaide Bank has posted a cash profit of $348 million in the year to June 30, some 7.7% more than its $323 million profit last year.

Its full-year net profit was $352.3 million, up 80.7% on last year $137.1 million which was hit by a $95 million writedown on its margin lending and wealth management divisions.

It said the profit it makes on loans was under pressure as low official cash rates caused competition for retail deposits and compression.

Managing director Mike Hirst says the bank has had solid results despite difficult trading conditions.

“Consumer confidence and demand for credit remains low, and competition remains very strong for retail deposits,” he says.

He says the low official interest rates nice for existing borrowers but says a broad return of consumer confidence is yet to come.

“While we expect to see relatively subdued credit growth in the coming 12 months, we remain confident that the unique Bendigo and Adelaide Bank business model will continue to resonate with customers.”

He says the support of customers and communities and its conservative funding and balance sheet structure meant it is well placed to benefit from any improvement in market sentiment and demand for credit.

"Our industry-leading retail and business customer satisfaction levels and the maintenance of an efficient business model becomes even more important in this environment," he said.

"At Bendigo and Adelaide Bank we will continue to leverage our unique strengths to take advantage of the significant opportunities that exist for our business."