June quarter the benchmark for Bendigo

Above system growth on the asset side of the balance sheet over the June quarter was one feature of the full year result that management of Bendigo and Adelaide Bank was keen to emphasise at yesterday's briefing on the profit for investors and media.

In the most recent quarter Bendigo produced growth in lending that was a surprising five times system, though this ratio is a function of the run down in big business lending by big banks and foreign banks.

On home loans, Bendigo reported growth over the June quarter of 1.3 times system, growth in other loans was 1.6 times and Bendigo had a much smaller loss of balances in business lending than reported for other banks.

Deposit growth matched system over the quarter at 5.7 per cent.

One development that will keep asset growth rising is that the bank is a willing lender once again to third-party mortgage managers.

New business volumes through this business, which was a cornerstone of the old Adelaide Bank, are back to $400 million a month and up from a low of $70 million a month.

The check on these ambitions for above system growth may be that demand is weakening. The Australian Bureau of Statistics yesterday reported that home loan commitments fell 3.9 per cent in the month of June, a nine-month low, and clearly a response to recent interest rate rises.