The statutory earnings of the bank were up 80 per cent on the previous financial year, largely due to a $95 million writedown of good will associated with the wealth business in 2011/2012.
Bendigo head of capital and investor relations Will Rayner told InvestorDaily a deterioration in the margin lending climate led to the balance sheet writedown in 2010/2011.
The 7.7 per cent increase in cash earnings to $348 million for 2012/2013 is a better indication of the bank’s underlying performance, he said.
There was a “material improvement” in capital ratios in the 2012/2013 financial year, with Core Tier 1 capital increasing 15 basis points to 7.82 per cent, Tier 1 capital up 86 basis points to 9.25 per cent, and total capital up 30 basis points to 10.71 per cent.
“Under Standard & Poor’s ratings methodology [Bendigo’s] risk-adjusted capital ratio is 11.5 per cent, which is more than 25 per cent higher than any of the four major Australian banks,” a statement from the bank said.
Bendigo and Adelaide Bank has increased its total lending at an annualised rate of 4.8 per cent over the past 12 months – compared to systemic growth of 3.4 per cent over the same period.
Total loans under management were $51.6 billion at 30 June 2013 – up from $50 billion at 20 June 2012.
The ‘bad and doubtful’ debts expense was $69.9 million, up by 115.7 per cent on the previous corresponding period.
Cash earnings per share were 85.4 cents for the year – up 1.4 per cent on the prior corresponding period.
A final dividend of 31 cents per share has been announced by the company’s board, taking the full-year dividend to 61 cents per share.
The cost-to-income ratio was 57 per cent at 30 June 2013, down from 59.1 per cent in June 2012.
