“More moderate levels of growth [are] expected in the future” Bendigo and Adelaide Bank said in a quarterly trading update for the March 2025 quarter on Friday.
Residential mortgage growth slowed in the last month of the quarter, with the quarterly growth now below 10 per cent annualised, the bank said.
Deposit growth was steady over the quarter, with transaction accounts declining, while savings accounts (excluding offsets) grew 9.3% annualised on the prior quarter.
Business lending growth was driven by Portfolio Funding over the quarter, meaning wholesale lending accounted for book growth.
During the quarter Bendigo said it migrated the Rural Bank system and retired the Rural Bank brand, “as we deliver the final phase of our six-year transformation program.
“We have continued to reduce the number of core banking systems from eight to two, further simplifying our business and technology platforms.
“We remain focussed on sustainable growth and productivity improvements as we scale the business” CEO Richard Fennell said.
Cash earnings of $122.2 million were “lower in the third quarter, largely due to lower Other Income, while expenses were below the 1H25 quarterly average.”
Net interest income was slightly lower than the 1H25 quarterly average, with net interest margin flat on the prior quarter.