Bendigo (ASX:BEN) share price jumps nearly 7% on trading update

December 12, 2022 07:30 PM PST | By Sonal Goyal

Bendigo (ASX:BEN) share price jumps nearly 7% on trading update — Image source: © Nilsversemann | Megapixl.com

Details of the trading update

During the five months ending 30 November 2022, the company reported unaudited cash earnings after tax of around AU$245 million, up by 22% on previous year.
Over the last 12 months, the lending balance grew by 5.2% and it decreased by 0.7% in the past five months. It comprises 7.5% growth in residential lending and 3.0% fall in business lending in a year.
Deposit balances grew by 8.9% in a year and increased by 2.0% in the past five months.
YTD net interest margin (NIM) per revenue share arrangements of 2.30%.
Credit expenses contributed positively with arrears remaining at low levels.
As of 31 October 2022, common equity tier 1 capital ratio was 9.98%. it increased by 22bps in comparison to 30 September 2022.
Return on equity grew by 110bps in comparison to the previous FY22.

Marnie Baker, managing director and CEO of Bendigo bank commented,

Outlook for FY23

For the remaining FY23, the company expects further increase in interest rate to a terminal cash rate between 3.5% to 4.0%. in the second half of FY23, the NIM tailwinds are expected to continue.

In comparison to FY22, the operating expenses are anticipated to increase modestly, projecting a higher mix of investment spend being expensed and higher non-lending losses.

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