Bendigo & Adelaide Bank grows FY11 profit 41%

Bendigo & Adelaide Bank grows FY11 profit 41%

Bendigo and Adelaide Bank (ASX:BEN) has reported a 41% increase in FY11 profit, and revealed it will pay a full-year dividend of 60 cents per share.

The company grew its profit to $342.1 million, and said its cash earnings per share increased 10.8% to 92.3 cents.

As a result, Bendigo and Adelaide Bank announced a final 30 cents per share dividend, on top of the 30 cent interim dividend already paid out. The group has a policy of paying out 60-70% of its cash earnings as dividends.

By segment, Bendigo Bank contributed the lion's share of 54% of profit, followed by Adelaide bank at 25%. The remainder came from the Bendigo Wealth and Rural Bank divisions.

While costs increased over the year, the cost to income ratio fell to 57.4%. This ratio has been declining for some time – in December 2009 it was 58.5%. But it remains above the group's long-term target of 55%.

Net interest margins improved slightly, to 2.17% from 2.12%, and the bank said credit quality was “sound” across its business.

Group managing director Mike Hirst said the company had been the recipient of credit ratings upgrades from Fitch Ratings and Standard and Poor's during the financial year.

BEN shares fell 1.49% in Monday's trading to $7.950.

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Tags financial resultsBendigo and Adelaide Bank Ltdcredit ratingMike HirstASX:BEN

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