The new APRA capital rules are helping Bendigo and Adelaide Bank compete with the big players

APRA’s stricter capital rules are helping Australia’s fifth largest bank, Bendigo and Adelaide Bank, compete in the home loan market against the big four.

Managing Director Mike Hirst said: “The recent APRA announcements regarding changes to risk weights on mortgages is a positive step toward levelling the playing field and a good outcome for customers seeking greater choice in banking service providers.”

The bank today posted a 13.1% rise in full year underlying cash earnings to $432.4 million, beating analyst expectations of 12%.

However, the bank’s net interest margin contracted slightly to 4bps reflecting a competitive, low interest rate environment.

“Having to operate on an uneven playing field impacted mortgage growth and this was compounded by repayment of debt by customers,” Hirst said.

“However, it’s great to see our customers building equity and improving their financial wealth by taking advantage of the current low interest rate environment.”

A final fully franked dividend of 33 cents was declared, lifting full year dividend by 2 cents to 66 cents.

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