Shares in bank climb

BENDIGO and Adelaide Bank shares have soared after the regional lender said strong margin expansion in its second half helped it lift full-year cash profit 4.2 per cent to $418.3 million.

Bendigo said its net interest margin — a key measure of financial performance — for the six months to June was 2.34 per cent, some 0.08 percentage points higher than in the first half.

Bendigo’s full-year statutory net profit was up 3.4 per cent to $429.6 million.

It retained a final fullyfranked dividend of 34● a share, bringing its full-year payout to 68●.

Shares in the bank yesterday went from strength to strength throughout intraday trade before closing up 7.5 per cent at $12.10.

The bank benefited from mortgage rate increases designed to shift borrowers from interest-only loans to principal and interest, and to slow the growth of investor lending.