Bendigo and Adelaide Bank has shrugged off concerns about the impact of ongoing COVID lockdowns, announcing a release from its collective provision.
Ahead of the August 16 release of its 2020/21 results, the bank said it would release A$19.4 million from its collective provision. The collective provision was raised by $127.7 million in May last year to recognise the likely impact of the pandemic.
Bendigo and Adelaide chief executive Marnie Baker said in a statement that the release “reflects the improved economic outlook for the Australian economy, lower unemployment and higher residential property prices compared with 31 December 2020”.
The bank said it would report credit impairments of $18 million for 2020/21. Prior to the release of the collective provision, the impairment expense is $37.4 million.
In 2019/20, the impairment expense was $168.5 million - $40.8 million before the recognition of the impact of COVID.
The bank said it is currently supporting 273 personal customers with some form of assistance. Those accounts have a total lending balance of $83.7 million.