A bit more detail from further down the report. Some posters...

A bit more detail from further down the report. Some posters obviously did not get that far.

While no one wants to see the drop in Net Interest Margin - it has arisen from the DNA of this Bank - the largest single cause of the drop in net interest margin is Community Banking. Their presentation also clearly shows the expectation that this margin compression will unwind as Reserve Bank interest rates increase.


A significant portion of internal funding is also derived from Community Banking. The loyalty of Communities where BEN maintains a presence is one of BEN's unique strengths.


The Bank's strategy regarding Community Banking remains firmly supportive of the Community Banking model



Prior posters comments about the Bank's supposed inability to fund viable IT systems shows that they did not get beyond the headlines. Having worked around both NAB and to a lesser degree ANZ - I know that consolidation of IT systems is a huge cost and takes many years. Bendigo is well down the path towards successfully delivering on their strategy, which includes much greater (lower cost) digital selling.



While Community Banking is a higher cost model than the big four - Bendigo have launched their Up Bank, which is online only. This seems a reasonable strategy to appeal to the younger digital native generation.

I continue to hold the view that this was a reasonable report - growth in spite of lower NIM, while holding on to next generation strategic initiatives.