Bendigo Bank H1 profit falls

Bendigo and Adelaide Bank (BEN) has posted a slight decline in first-half profit, but remains confident of the lender's position in the market for the remainder of the year, buoyed by a lift in cash earnings.

In the six months to December 31, Bendigo posted a net profit of $180.7 million, a 4.6% decline on the $189.4 million recorded in the previous corresponding period.

Cash earnings increased 9.5% to $185.9 million, from $169.7 in the first half of the previous year.

In the same period revenue was $707.6 million, an 8.7% lift on the previous corresponding period's $651 million.

The group will pay a fully-franked interim dividend of 31 cents on March 31 to shareholders on the register at February 27.

Managing director Mike Hirst said he didn’t expect any significant change in operating conditions.

"Things should remain stable although I expect the focus of competition to shift from deposits to assets," he said.

"Given how well our brand resonates with our customers and communities, our bank will be able to compete effectively in this environment.

"Our new loan approvals grew strongly half on half as we increased our customer base."

Mr Hirst said demand for its offering remained strong and the group would look to build on that momentum in the second half.