Bendigo and Adelaide Bank posts 56 per cent interim profit increase

australian-securities-exchange/macquarie/money-management/

16 February 2009
| By Liam Egan |

Bendigo and Adelaide Bank has hit back at analyst criticism of its purchase of Macquarie’s margin loan business in January this year during its announcement of a 56 per cent interim net profit (before significant items) result for 2008-09.

The bank said its margin loan business, Leveraged Equities, “remains in excellent shape” despite analysts’ criticism of it for buying (some of) the Macquarie loans book in January this year.

Bendigo and Adelaide Bank spokesman Owen Davies told Money Management that despite margin call activity in the interim reporting period there were no provisions or losses in its Leveraged Equities business.

“Our view is that it will be a very good business for us as confidence returns to the equities market and people direct more of their balance sheet towards equities again.”

He said the acquisition of Macquarie’s loans “provides further scalability” to the business, increasing its customer numbers to more than 31,000.

Earlier group managing director Rob Hunt said the after tax profit of 56 per cent to $118.8 million for the six months to December 31 last year had been “delivered in a changing and challenging time for banks”.

“Our determined and disciplined approach to writing sustainable and profitable business has placed the group in the best possible position to manage these challenges."

He said the recent merger of Bendigo and Adelaide Bank continues to proceed in line with forecasts, with $33.1 million in cost synergies achieved in the interim period.

An interim dividend of 28 cents per share fully franked was announced, the same as in the previous corresponding period.

In a statement to the Australian Securities Exchange the bank also announced a proposal to acquire all the units in the Adelaide Managed Funds Asset-backed Yield Trust for approximately $174 million.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 1 day ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND