Bendigo and Adelaide Bank Taking Market Share and Improved Profitability Should Follow

What a difference six months can make. Bendigo and Adelaide Bank’s AUD 244 million first-half profit was up 156% on second-half fiscal 2020. The result was better than we expected overall. The extremely low loan losses, which can be volatile in uncertain periods, is the key driver behind a 39% increase in our fiscal 2021 profit forecast. Bad and doubtful debts of AUD 19.5 million compare with AUD 145.3 million (predominantly COVID-19 provisions) in second-half fiscal 2020. We expect higher losses in the second half of fiscal 2021 as loan deferrals and government support packages end, despite the provisions taken in 2020 curbing the impact on earnings.