Term deposits help Bendigo bank grow profits

The Bendigo and Adelaide Bank has seen its profits increase by 60 per cent after it was able to grow its funding share from term deposits.

In its full-year results for the 2009-10 financial year, the bank revealed a profit of $242.6 million, with managing director Mike Hirst claiming that the recorded cash earning of $291 million “puts us back to where we were pre-global financial crisis”.

Indeed, the figures showed that Bendigo and Adelaide Bank was able to grow its deposit base over the last year from what the Business Spectator described as “an already very healthy 84 per cent of its funding base” to 88 per cent.

The rise suggests that despite the growing possibilities for Aussies to compare term deposits and secure competitive deals across the banks, long-term savers remain attracted to the rates and offers at Bendigo.

“Term deposits have continued to grow and that shows people are more inclined to save again,” Mr Hirst said. “We’re certainly seeing a continued increase in customer numbers each month.”

Last week, the AMP Retirement Index suggested that the federal government’s plan to lift the Superannuation Guarantee (SG) to 12 per cent will prove to be a major benefit for savers.