Bendigo and Adelaide Bank profit down 43 per cent
Bendigo and Adelaide Bank has reported a 43 per cent drop in its net profit after tax (NPAT) for the 2011-12 financial year.
The bank announced a NPAT of $195 million for the 12 months ending 30 June 2012, compared with 2010-11's $342.1 million profit.
Cash earnings fell by 3.9 per cent on the previous financial year to $323 million, and cash earnings per share were down 8.8 per cent to 84.2 cents per share.
Bendigo and Adelaide Bank also announced there would be no short-term incentive bonus pool for executives relating to financial year 2011-12.
Operating costs for the bank grew by 2.2 per cent, half of which was attributed to the purchase of Bank of Cyprus Australia.
The bank also boosted its Core Tier One capital by 42 basis points with the sale of $170 million in subordinated notes (releasing $80 million of Core Tier One capital) along with the sale of the bank's 7.8 per cent interest in IOOF.
Bendigo and Adelaide Bank managing director Mike Hirst revealed plans to issue a Basel III compliant Tier One Hybrid capital instrument in the first half of 2013.
"But even without this issue we are confident that our current capital structure will meet the requirements of the proposed Basel III capital standards," he said.
The directors announced a final dividend will be maintained at 30 cents per share.
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