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Bendigo and Adelaide Bank has announced that total lending grew by 3.4 per cent during the half, with residential lending increasing by 5.3 per cent in its financial results for the half year ending 31 December 2024, reflecting ongoing expansion across all consumer channels.
Branches, including community banks, contributed to 30 per cent of residential lending settlements, while the Bendigo Lending Platform accounted for 28 per cent and digital mortgages made up 19 per cent of all settled mortgages.
However, business and agribusiness (B&A) lending saw a contraction of 3 per cent, largely due to seasonal run-off in the agribusiness portfolio in the latter part of the half.
Bendigo Bank confirmed that it is approaching the final stages of a six-year transformation program, during which strategic investments were made to support its 2025 objectives.
The program has focused on reducing system complexity and improving digital and risk management capabilities. Notable achievements include:
• The successful rollout of the Bendigo Lending Platform, which contributed to home lending growth at twice the rate of the system over the half. The platform will be extended to mobile lenders and branches later this year.
• The creation of the business direct team within B&A to enhance the customer experience for microbusiness clients. Process improvements in B&A have resulted in a 16 per cent reduction in key customer pain points. The migration of Rural Bank customers to Bendigo Bank Agribusiness is set to be completed by the second half of 2025.
• Continued new customer growth for Up, which saw a 13.2 per cent increase half on half. Deposits grew by 22.6 per cent to $2.6 billion and home loans surged to $1.2 billion. Bendigo Bank will continue investing in Up, driving further growth across both sides of the balance sheet.
Commenting on the results and outlook, the bank’s CEO and managing director, Richard Fennell, said despite ongoing cost-of-living pressures, home loan customers have increased their repayments over the half and “42 per cent now one year ahead on repayments and 86 per cent maintaining a financial buffer”.
“Australia remains in a strong position and is well placed to withstand periods of uncertainty or volatility. Recent data suggests a reduction in core inflation will be slow but remains on track,” Fennell said.
“We anticipate official interest rates to be reduced to a more neutral level of around 3.5 per cent this calendar year. We are also mindful of the challenges facing the Victorian economy, specifically, where arrears are slightly higher than other states, though we note there has been no material impact on credit costs.
“Looking ahead, we anticipate a more positive economic outlook and the prospect of interest rate reductions, in the face of easing inflation. Credit quality remains sound, however, we are monitoring our portfolio carefully and expect residential arrears to gradually increase and bad and doubtful debts to move toward longer-term averages.”
