Auswide Bank (ASX:ABA) to pay 19 cps interim dividend

  • February 24, 2021 04:27 PM AEDT
  • Tribhuwan
    Author Tribhuwan
    37 Posts

    Tribhuwan is an Analyst at Kalkine Media Pty Ltd. He writes on financials, consumers products, fast-moving consumer goods, emerging companies, and economic policy. In these areas, he also covers global businesses. He is a graduate in BCom (Hons) from...

Auswide Bank (ASX:ABA) to pay 19 cps interim dividend

Source: Shutterstock

Summary

  • Auswide Bank has a strong presence in regional Queensland. The bank has declared a 19 cents per share interim dividend after a strong set of half-year results driven by better economic conditions and growth. 
Gold MTF non-AMP

Auswide Bank Ltd (ASX:ABA) has reported half-year results for 31 December 2020. The bank has a strong presence in Queensland and provides home loans and consumer credit through online branch and brokers. 

While the bank has a strong presence in Queensland, it is actively growing its presence in New South Wales and Victoria. As of 1H FY21, the east coast states constituted 94.1% of its loan book, with most from Queensland.

Net interest revenue for the period was $38.26 million, up nearly 11% from $34.51 million. Net interest margin improved six bps to 201 bps compared to 196 bps in the same period last year. Auswide Bank has declared a fully franked interim dividend of 19 cents per share. 

Consolidated net profit after tax for the half-year period was $11.47 million, up 23.9% from $9.25 million in the same period last year. At the end of the period, its deposit increased by 10.6% and constituted 74.4% of funding. 

Copyright © 2021 Kalkine Media Pty Ltd

Lending was strong during the period, with loan book growing 8.4% over the same period last year. Auswide Bank’s loan growth was also ahead of the system, showing strong flows from brokers, partnerships, and first home loan deposit scheme. 

At the end of December 2020, the bank’s loan book stood at $3.48 billion, of which $3.31 billion was in home loans and the rest in business and consumer loans. Customer deposits grew 10.6% to $2.79 billion.

On the economic outlook, the bank said the Queensland economy remains strong and outperforming the national average. COVID-19 support to the customers is down significantly from $197.2 million in March to $37.2 million in December. 

Besides, the bank said the second-half began on a positive note with broker flows supporting loan book and deposit growth supporting funding. Auswide Bank intends to focus on the implementation of the three-year strategic plan. 

On 24 February 2021, ABA shares closed at $6.38, down by 3.19%.

 

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK