Bendigo and Adelaide Bank shares gain on raised expectations for FY earnings
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More news: Shares in Bendigo and Adelaide Bank rose at market open on the ASX after the bank revealed a slide in cash earnings over the 10 months to April, but a strengthened net interest margin and low credit expenses.
The bank's shares were up 4.2% to $10.34 by 11:00am AEST.
E&P Capital analysts said Bendigo and Adelaide's unaudited cash earnings of $464 million for the 10-month period implied cash earnings of around $196 million for the four months ending 30 April.
Extrapolating this run-rate, they said, would result in cash earnings of $294 million for the second half and $562 million for the full financial year, 9% above consensus estimates.
Bendigo and Adelaide Bank posts earnings drop
The news: Bendigo and Adelaide Bank followed up its first-half profit decline with a drop in cash earnings for the 10 months to April.
The numbers: The regional lender reported unaudited cash earnings of $464 million for the 10 months to April 2024, down 2.3% compared to the prior corresponding period. It noted that its net interest margin post revenue share arrangements was 1.87% over the period, up from 1.83% reported for the first half.
Shares last closed at $9.92 and are up 15.8% over the last 12 months.
The context: In February, Bendigo and Adelaide recorded a drop in first-half cash profit as competition in home loans squeezed margins.
Earlier this week, the bank's chair David Foster stepped down from the role, with interim replacement Vicki Carter confirmed as his permanent successor.
What they said: The bank's CEO and managing director Marine Baker said: "At our half year results in February we reiterated out commitment to managing the business for long term value. We have continued our focus on disciplined growth and prudent management of our costs".
The source: ASX announcement
