The bank said today that cash earnings for the six months to December 31 were just $1 million higher than in the prior corresponding period, while net profit also stayed flat at $209 million.
Net interest margin – the difference between interest earned and interest paid out – fell by 0.6 percentage points to 2.10 per cent against the backdrop of two Reserve Bank rate cuts, while bad and doubtful debts nearly doubled to $39.8 million.
Managing director Mike Hirst said the net interest margin had recovered by the end of the year to 2.14 per cent as loans were repriced across the market due to increased funding costs.
Bendigo lifted both retail deposits and loans under management, approving $8.7 billion of new residential home loans in the half – compared to $5.3 billion in the prior corresponding period.
“Our desire to provide our customers with the best overall experience in financial services led to strong lending growth across retail and partner channels, which has resulted in the bank delivering growth above system, despite competition remaining intense,” Mr Hirst said.
Bendigo first-half results
Cash earnings up 0.4pct to $224.7m
Net profit up 0.1pct to $209m
Income up 1.5pct to $795.3m
Interim dividend flat at 34 cents, fully franked