The question of whether to focus on growth or profitability is one that executives wrestle with every day. But for Australia’s bank chiefs, rarely has this issue been more pressing.

On Monday, Bendigo and Adelaide Bank chief executive Marnie Baker delivered an impressive result that hit many of the points the market was looking for: cash earnings surged 22 per cent; net interest margin (the key measure of banking profitability) rose strongly; the interim dividend jumped more than 9 per cent; and the cost-to-income ratio plummeted 5 per cent to 54.6 per cent.