Bendigo Bank Touts Better Lending Environment

Shares in the Bendigo and Adelaide Bank edged up 0.2% in yesterday’s sell-off after it revealed an improvement in loan deferrals.

In a trading update issued before the AGM yesterday, the bank said it had seen strong growth in lending as well.

The shares rose 2.2% to $6.82 while the wider market fell more than 104 points or 1.7%, so the performance by Bendigo shares stood out.

The bank reported 11% growth in total lending and 16.1% growth in residential lending for the first quarter.

Shareholders were told the number of loan deferrals has decreased by 69% from its peak in May (when the pandemic was at its peak).

That saw total deferred payments fall to around $2.5 billion, from $6.9 billion in June.

Residential support packages – including deferrals and restructured loans – are down 74% since May to 4,408 accounts and commercial packages (totalling 2,389 accounts) were down 49% since July.

CEO Marnie Baker said the bank continued to work with customers on loan deferrals to enable for a “smooth transition and fair outcomes” for customers and shareholders.

“It’s rewarding to see our personalised support has enabled more than two-thirds of these customers to get back on their feet and we are further encouraged by the Victorian Premier’s announcement to reopen Melbourne’s retail and hospitality industries from tomorrow,” Ms. Baker said.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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