Australia’s Bendigo and Adelaide Bank has posted cash earnings of A$217.9m for the six months ending 31 December 2014, an increase of 17.2% compared with A$185.9m a year ago.
The lender’s statutory net profit after tax in the period rose 25.8% to A$227.3m, while revenue increased 10.5% to A$786.1m.
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The bank said that its net interest margin–a profit measure based on the difference between the rate at which a bank borrows and lends–held steady over the six-month period at 2.24%, having widened by 5 points in its last fiscal year.
Bendigo and Adelaide Bank managing director Mike Hirst said the results reflect "disciplined margin management and balance sheet growth."
"Whilst demand for housing loans is solid we are seeing an increase in customers paying down their debt across all portfolios. While this impacts the Bank’s growth, it’s fantastic for our customers as they’re building equity and greater financial wealth, particularly as interest rates have fallen.
"Despite this environment, we’ve strengthened our balance sheet with a strong Basel III compliant liquidity position, while our capital raising activities have been well-supported by institutional and retail investors," Hirst added.
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