Home lending up 9.4% annualised, but pace slows in final month of Q3
Bendigo Bank has reported a modest lift in profits after tax and residential mortgage lending for the March quarter, although loan growth showed signs of slowing toward the end of the period.
For the third quarter of the financial year, the bank said residential mortgage lending increased at an annualised rate of 9.4% from the previous quarter, reaching $66.7 million. This followed a 5.3% expansion in the residential loan book during the first half of the financial year.
Despite the rise, the non-major lender noted a deceleration in mortgage growth in the final month of the quarter.
Net profit after tax rose 1.3% year over year to $109.8 million. Combined total lending for Bendigo and Adelaide Bank reached $16.5 million, an annualised growth of 11.5% from the prior quarter.
Cash earnings after tax came in at $122.2 million for the bank, named earlier this year as Australia’s most trusted bank, marking a 7.8% decrease compared to the quarterly average of the first half.
Deposit growth remained flat overall. While transaction accounts declined, savings accounts excluding offset accounts grew at an annualised rate of 9.3% from the previous quarter. Business lending gains were primarily attributed to portfolio funding.
“Cash earnings are lower this quarter, largely due to lower other Income, while expenses were below the 1H25 quarterly average,” said managing director and chief executive Richard Fennell (pictured above) on the bank’s latest trading update. “Net interest income was slightly lower than the 1H25 quarterly average with net interest margin flat on the prior quarter. The balance sheet remains well positioned for the current economic outlook with more moderate levels of growth expected in the future.
“During the quarter, we migrated the Rural Bank system and retired the Rural Bank brand, as we deliver the final phase of our six-year transformation program. We have continued to reduce the number of core banking systems from eight to two, further simplifying our business and technology platforms.
“We remain focussed on sustainable growth and productivity improvements as we scale the business.”
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