Bendigo and Adelaide Bank has lifted its half year cash earnings more than 17 per cent amid strong lending growth.
The bank recorded cash earnings of $217.9 million for the six months to December 31, up from $185.9 million a year ago.
Net profit was up nearly 26 per cent to $227.3 million.
The bank also increased its fully-franked interim dividend by two cents to 33 cents per share.
Total lending rose 7.5 per cent during the half which, Bendigo said, was stronger than the growth recorded by the big four banks – Commonwealth Bank, Westpac, ANZ and National Australia Bank – during the same period.
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But chief executive Mike Hirst said customers had been paying down their debt more quickly, which had hurt housing lending growth.
“Whilst demand for housing loans is solid, we are seeing an increase in customers paying down their debt across all portfolios,” he said.
“While this impacts the bank’s growth, it’s fantastic for our customers as they’re building equity and greater financial wealth, particularly as interest rates have fallen.”
Housing lending increased 3.2 per cent during the half, while Business lending rose 19.7 per cent, also ahead of the big four.
The bank also maintained its net interest margin – the profit it makes on loans – at 2.24 per cent during the half.
