Bendigo Bank FY cash earnings down 6.6%

Bendigo and Adelaide Bank says increased redundancy and remediation costs have fuelled a 6.6 per cent decline in full-year cash earnings to $415 million.

The regional-focused lender says income for the year to June 30 fell by 4.6 per cent to $1.57 billion in an environment beset by “low growth, political uncertainty, subdued consumer confidence and increasing competition”.

Full-year net profit fell by 13.3 per cent to $376.8 million, while the bank’s net interest margin remains flat at 2.36 per cent compared with a year ago.

It has maintained a final divided of 35.0 cents per share, fully franked.

Managing director Marnie Baker said while business conditions remained reflective of slow but steady growth, the future would be supported by accommodative monetary and fiscal policy.

“During the last six months, we have laid solid foundations, achieved success and will accelerate the organisational change required during the coming year,” Ms Baker said.

A 5.9 per cent increase in operating expenses for the year included $16.7 million in remediation costs, including self-reported issues related to its former financial planning arm.

There were also $11.9 million in redundancy costs, up from $2.3 million a year ago.

Shares in Bendigo Bank were worth $10.75 before trade on Monday, down 5.6 per cent from $11.39 a year ago.

AAP

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