Bendigo posts 11 percent rise in cash earnings
(14 February 2018 – Australia) Bendigo and Adelaide Bank (Bendigo) said first-half cash earnings rose 10.7 percent as margins improved.
The South Australian based bank’s cash earnings for the six months ending 31 December rose to A$225.3 million from A$203.5 million a year ago, below estimate of around A$236 million.
Half year net interest margin before revenue share arrangements expanded 18 basis points to 2.36 percent.
“This improvement (in margins) obviously reflects mortgage repricing in response to regulatory caps on interest only and investor lending, as we sought to restrict growth in those products,” Bendigo said in a statement.
Australia’s banking watchdog, The Australian Prudential Regulatory Authority last year set limits on interest-only and investor lending, in an bid to curb surging prices in the housing market, prompting some banks to hike mortgage rates for speculative buying.