more good news today for ben

On ABC local radio ~ 7.35 AM today an interview with Owen Davies from Bendigo Adelaide bank re the gvt. guarantees which finish on 31st March.

Deposits of over $1M attracted higher guarantee fees for the smaller banks, putting them at a disadvantage compared to the 4 majors.

As a result of this, many local institutions ( councils and other municial authorities etc) that saw merit in supporting the BEN in their communities through the Community Banks and local branches had to withdraw their funds and put them with the majors.
He gave the example of a $10mill deposit costing $8000 more per year to guarantee with BEN than with the majors.
Naturally all other things being equal, the councils etc had to put their funds with the majors.

After 31th March this will no longer be the case and BEN will be actively promoting that to these authorities with the aim or getting back some of the money withdrawn.

BEN has been well served by its retail depositors and did not BORROW any money through the gvt guarantee scheme.

He conceded that the competition for funds was fierce, but at the same said.... the community banks first half was very good, and better than the previous period.

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Elders Rural Bank.. a J.V. with BEN and Elders has already reported an excellent increase in profit for the first half.
So I hope this, plus the fact that the community banks are doing well can be extrapolated to the general banking division and to an overall good first half result for BEN.


Based on the timing of last years results this should come out around 16th FEB., so we will know soon enough.

Of course the Gt. Southern fiasco still hangs over BEN, but this appears to be of less concern than previously thought.



DYOR


Bendigo