- Bendigo & Adelaide Bank’s net income has increased by 13% year-on-year, reaching A$282.3 million compared to A$249 million the previous year.
- However, cash profit has seen a 9% decrease year-on-year, now at A$268.2 million.
- The bank’s net interest margin is down to 1.83% from 1.9% year-on-year.
- Interim dividend per share has seen a slight increase from A$0.290 to A$0.300 year-on-year.
- The Common equity Tier 1 ratio has improved to 11.2% from 10.1% year-on-year.
- Net interest income on a cash basis is at A$813.6 million, marking a 0.6% decrease year-on-year.
- The bank attributes these results to prudent management of shareholder capital and unique opportunities.
- Bendigo and Adelaide Bank is considering a new BEN Capital Notes offer, subject to market conditions and regulatory approvals.
- The bank anticipates the official cash rate to remain at current levels for most of 2024 due to a recent pause from the Reserve Bank of Australia.
- Despite expectations of short-term rise in unemployment levels, the Australian economy is likely to outperform its peers over time.
- Economic growth in 2024 is expected to be modest, but improvement is expected in 2025.
- Cost of living pressures are expected to continue challenging Australian households, with bad debts expected to trend upwards and move toward longer-term averages over time.
Bendigo And Adelaide Bank on Smartkarma
Smartkarma, an independent investment research network, has recently published a high conviction report on Bendigo And Adelaide Bank by Daniel Tabbush. According to the report, BEN stands out from its peers due to its focus on residential mortgage loans, which are less impacted by high interest rates and a slowing economy. This is reflected in the company’s low long-term credit costs and decreasing non-performing loans. Unlike larger banks such as CBA, NAB, WBC, ANZ, and MQG, BEN has minimal exposure to corporate loans, making it less vulnerable in the current economic climate. In fact, BEN’s net interest margin has even increased in FY23 and is not expected to be affected by maturing debt in FY24.
A look at Bendigo And Adelaide Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma’s Smart Scores, the long-term outlook for Bendigo And Adelaide Bank looks positive. The company has received a score of 4 out of 5 for value, dividend, and growth, indicating strong performance in these areas. Bendigo offers a range of financial services, including banking, commercial finance, and superannuation, which have contributed to its high scores in these categories.
However, the company has received a score of 2 for resilience, which suggests that it may face some challenges in the future. This could be due to factors such as changes in the economic environment or increased competition in the financial sector. Despite this, Bendigo has still received an overall score of 4 for momentum, indicating that it is currently performing well and has potential for future growth.
In summary, Bendigo And Adelaide Bank Limited is a reputable financial institution that offers a variety of services, including banking, funds management, and internet banking. Its strong scores for value, dividend, and growth suggest a positive long-term outlook, while its lower score for resilience may indicate some potential challenges. However, its overall score of 4 for momentum indicates that it is currently performing well and has potential for future success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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