Bendigo and Adelaide Bank posts 56 per cent interim profit increase
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.
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