Bendigo and Adelaide Bank has lifted its dividend after posting a $434.5 million profit
BENDIGO and Adelaide Bank has lifted its dividend after posting a $434.5 million after tax profit, up 1.1 per cent from the previous year.
BENDIGO and Adelaide Bank has lifted its dividend after posting a $434.5 million after tax profit, up 1.1 per cent from the previous year.
The country’s fifth-largest retail bank will pay a final dividend of 35 cents per share, up 1 cent from 2017, and bringing the full-year payout to 70 cents.
The bank’s cash earnings result was also up 6.4 per cent from the previous year, reaching $445.1 million.
Bendigo and Adelaide Bank managing director Marnie Baker said the company’s strong performance was delivered in an increasingly competitive banking environment.
“While all lending markets remain highly competitive, particularly lending to owner occupiers, we have seen solid earnings growth across the local and partner segments,” she said.
“Despite the second half being influenced by negative income growth, our continued focus on prudent cost management in a challenging environment has seen our cost to income ratio continue to decrease to 55.6 percent for the financial year.
“Looking forward, we don’t anticipate a material change in our cost to income ratio, as we focus on accelerating revenue growth.”
Ms Baker said the bank’s balance sheet supported a strong capital position, well-placed to meet APRA’s benchmarks.
“Our organic capital growth reflects strong profitability, stable balance sheet and a move to lower risk exposures,” she said.
“We continue to consistently lead the industry with a strong funding position, which provides flexibility to fund organic and inorganic asset growth.
“With 80.2 percent of funding sourced from retail customers, this further indicates the strength of our business in an environment where volatility and disruption will continue.”
Bendigo and Adelaide Bank will pay its final dividend on September 28.