Bendigo and Adelaide Bank posts $97 million loss in 'challenging' market
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The news: Bendigo and Adelaide Bank has recorded a $97 million statutory loss following a previously flagged $540 million goodwill impairment. It pushed the bank into the red despite a $514.6 million cash profit.
The numbers: Cash deposits climbed to $72.9 billion and its residential lending book hit $66.6 billion. Net interest margins were largely flat at 1.88%, while common tier one equity ratio fell to 11%.
Bendigo grew customer numbers up 11% to 2.9 million, largely driven by the strength of its digital Up franchise which now represents four in ten customers.
The bank announced a dividend of 63 cents per share. Cash return on equity was 7.34%.
What they said: Chief executive Richard Fennell said the results represented a "balanced approach in a challenging and competitive environment".
"The bank has delivered more moderate growth and stable margin in the second half of FY25. This is in contrast to the first half where a significant increase in demand for our products placed margins under pressure," Fennell said.
"Expenses were higher year-on-year due to the planned increase in investment spend, as previously announced in the FY24 results. Pleasingly, our business as usual (BAU) expenses - which excludes investment spend - were well below inflation for the second half."
The source: ASX Release
