The crunch has occurred regardless of mortgage charges shifting larger, as a result of the positive aspects from mortgage “re-pricing” have been greater than offset by banks providing sharp reductions to new clients, alongside greater funding prices.
With credit score progress additionally slowing, managing director Marnie Baker stated the financial institution anticipated one other robust half, and it will look to offset some of the drag by slicing prices.
“I think it’s going to be as challenging in the second half as it has been in the last half,” Ms Baker stated.
“I think there is pressure, it is a lower credit growth environment and lower revenue growth environment. We are still very, very focused on costs, especially in this type of environment to ensure that we are driving costs down.”
In response to the Hayne royal commission report, Ms Baker stated there have been actions the federal government might take to spice up competitors, which might “supplement” the fee’s suggestions aimed toward curbing misconduct within the business.
Bendigo had stated the royal fee could possibly be a chance for the financial institution, and Ms Baker stated clients have been ditching the most important banks after the royal fee, however there was nonetheless “apathy” about altering banks.
Bell Potter analyst TS Lim stated it had been a “tough half” for Bendigo, as he predicted a “raft of profit downgrades” out there’s expectations of the financial institution’s earnings.
“Top line growth was soft, margins were down, volumes were down,” Mr Lim stated.
Bendigo can pay an unchanged interim dividend of 35¢ a share, which can be absolutely franked and paid on March 29.