Bendigo Bank (ASX:BEN) share price touches 12-month high

The Bendigo Bank (ASX: BEN) share price hit a new 12-month high today. Here's a summary of the bank's recent performance and outlook.

Gretchen Kennedy

Gretchen grew up in a small Connecticut town where she learned to read The Wall Street Journal as part of the grade six enrichment program. She moved to Australia in 2002, earned a Master of Arts (Professional Writing) and went on to spend eight years writing on Wall Street. In June 2018, Gretchen returned to Australia and has since developed a keen interest in all things ASX. In December 2020, she started writing for the Motley Fool. Gretchen's usually writing something, reading a book or chasing her dogs around.

Published February 16, 2021 4:58 pm AEDT

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price closed its trading day at $11.28 this afternoon. That's a 6.82% gain for the session and a fresh 12-month high.

Let's look at the bank's half-year results released yesterday and see what might have sent the Bendigo Bank share price sailing higher.

Two happy people use their hands as binoculars, indicating a positive ASX share price or on watch — Image source: Getty Images

Bendigo Bank share price soars after strong results

In its announcement for the half-year ending 31 December 2020, Bendigo reported a 67.3% statuary net profit gain of $243.9 million. Total income growth popped 3.3% to $849 million, and cash earnings were up 1.9%, coming in at $219.7 million.

Management said growth in the bank's lending portfolios and increased hedging revenue drove these achievements.

Operating expenses dropped 3.1% during the period to $571.4 million, and Bendigo reiterated its focus on achieving "sustainable cost reductions across the business".

The bank's board declared a fully franked dividend of 28 cents per share. This comprises 4.5 cents per share relating to the final deferred dividend for FY20, and 23.5 cents per share relating to the FY21 interim dividend.

Looking ahead

Sharing her insight about the outlook for the Bendigo Bank share price over the coming months, CEO and managing director Marnie Baker said:

With business confidence and consumer sentiment up, an ongoing low-rate environment, a growing housing market, an improving jobs market, continued growth in regional Australia, and our customers showing remarkable resilience and adaptability, we are buoyed by the outlook.

However, we always take a long-term view, and we remain mindful of the global and local impacts of the pandemic, international trade sentiment, decisions on government support measures and the ongoing reality of natural disasters and climate change.

Looking ahead, supported by our growth and transformation strategy, we continue to target above system residential lending and further growth in small business and agribusiness sectors, whilst reducing our cost base, and maintaining a strong and resilient balance sheet.

The Bendigo Bank share price has risen 65% over the past 6-month period.

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