Bendigo Bank sees an upside to the financial services royal commission

File photo of the Bendigo Bank Fun. Michael Dodge/Getty Images
  • Bendigo and Adelaide Bank full year underlying cash earnings of $445.1 million, up 6.4%.
  • Fully franked final dividend of 35 cents per share, up 1 cent.
  • The bank says the financial services royal commission presents a strong opportunity.

Bendigo and Adelaide Bank, Australia’s fifth largest retail bank, sees an opportunity in the financial services royal commission where the big four banks and AMP have been grilled over a series of scandals.

The regional bank today released its annual results, showing underlying cashing earnings up 6.4% to $445.1 million. After tax statutory profit was up just 1.1% to $434.5 million.

Income was up 2.1% to $1.64 billion and the bank’s net interest margin as up 14 basis points to 2.36%.

Managing Director Marnie Baker pointed to trust as a key differentiator for her bank.

“No bank is immune from the heightened attention surrounding the Royal Commission and other inquiries, but this also presents a strong opportunity,” she says.

“Our strategy, combined with our passionate culture and innovative mindset, drives the highest trust and advocacy in the industry.

“Our recent accolade as Australia’s most trusted bank –- and third most trusted brand –- in the Roy Morgan Net Trust Score is one of many metrics that indicates our strategy resonates with our 1.6 million customers.

“At a time when community standards in banking have never been more important, the Community Bank model is delivering significant social and economic benefits for Australian communities.”

The bank has returned more than $200 million to local communities in 20 years, about $17 million this year.

“We continue to invest in our people, and we have a responsibility to ensure they continue to upskill and evolve, building capability and resilience to navigate the future financial services industry,” she says.

“Our employees drive our customers’ success, and these investments will invariably underpin our organisation’s success into the future.”

The bank declared a fully franked final dividend of 35 cents per share, up one cent.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.