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Strong profit growth for Bendigo bank

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AAP

February 18 2013, 09:57AM

The bank's funding costs fell in the six months to December, leading to a 10 basis point rise in its net interest margin to 2.18 per cent.

Net interest margin is a key measure of the profits made on loans.

Deposits make up 80 per cent of Bendigo's funding, and much of the funding cost reduction came from cheaper funds from wholesale markets, it said.

Mr Hirst also said costs had been contained.

Bad debt charges rose in the six months to December to $32.1 million, but they remained low as a percentage of the bank's total assets, the company said.

Bendigo declared a fully-franked interim dividend of 30 cents per share, consistent with the same period in the previous year.