Listed community banking group Bendigo Bank (Bendigo) has recorded a 34.1 per cent jump in profit after tax for the half-year ending 31 December.
Bendigo now has a net profit after tax of $72.8 million. This is the first result since the group’s merger last year with Adelaide Bank, and includes six months of Bendigo accounts and one month of Adelaide Bank accounts.
Bendigo’s strong result demonstrates its ability to achieve solid growth despite volatile markets, Bendigo Bank managing director Rob Hunt said.
“We have demonstrated a commitment to write quality credit in reasonable volumes and at profitable prices – and that remains the focus of the merged group,” Hunt said.
“So our strategy has not changed, just the market conditions in which we find ourselves.”
The merged banking group is on track to deliver initial forecasts of $60 million to $65 million in merger synergies. The group is expecting to deliver 80 per cent by its second full year of operation.
The merged group’s new name, Bendigo and Adelaide Bank, comes into effect from March 31.
“As our retail bank continues to expand and mature, and as partnering with our communities, business partners and customers continues to produce tangible benefits, we will continue to produce sustainable and consistent results,” Hunt said.
“The merger, and the way in which the two banks have already been able to work together, augurs well for the continued success of this business.”
Bendigo still expects to hit its full-year target for cash earnings per share growth of 12 per cent, Hunt said.
