Risk, reward and regions highlighted as AGM resolutions approved

Bendigo and Adelaide Bank Chairman, Robert Johanson, has announced all resolutions put to shareholders at today’s Annual General Meeting were approved by the required majorities.

Shareholders were asked to elect two new directors, Jim Hazel and David Matthews, and re-elect Robert Johanson and Terry O’Dwyer as well as approve the Company’s remuneration report.

During his address to shareholders, Mr Johanson said the profitability of the business had largely been restored after the turmoil of the Global Financial Crisis.

“Despite the considerable uncertainties in the markets and the continuing severe funding pressures on the banking system, our cash earnings per share and dividends per share are now back to the levels of 2007, the year before the crisis.

“As a result of our continued investment in the business, even through these difficult periods, its size and robustness is much greater than it was three years ago. We believe Bendigo and Adelaide Bank is a much stronger organisation than it was before the financial crisis,” he said.

Mr Johanson advised shareholders of all Australian banks that banking reforms are likely to impact on their returns. “

Application of the new rules on capital adequacy and liquidity management, the Basel III rules, are now being debated and implemented.

“As a result more capital will be required by banks, in particular by those that are judged as being systemically important and too big to fail. And all banks will need to hold additional liquidity, so reducing the amount of earning assets.

“Banks will be lower risk business as a result of the new capital and liquidity rules. So investors should accept lower returns. In pre-crisis days, returns on equity of 20 per cent or more were expected and delivered by banks in Australia and returns to yields like that are still expected and even anticipated by most analysts,” Mr Johanson said.

He also called on the Federal Government to recognise the role and place of the regions and carefully consider funding and investment in these parts of the country.

“At this bank, we have been investing in and dealing with the communities in the regions for all our existence.

“What we are looking for is government to establish the building blocks to encourage and to nurture local, regional entrepreneurship. Handouts or regional subsidies will only suffocate that spirit,” commented Mr Johanson.

Managing Director, Mike Hirst, also announced the bank’s search for a new corporate head office in Adelaide has progressed, with a preferred site now identified.

“The location under consideration is the existing Harris Scarfe site on Grenfell Street, and discussions with a developer will now commence and continue over the coming months in an effort to negotiate a suitable outcome for the bank and its Adelaide-based staff.

“The planned site will accommodate about 1000 employees from three locations across this city, providing our staff with a well-designed and environmentally-friendly office environment which encourages greater productivity for our organisation and enhances a one team environment for our Adelaide employees,” Mr Hirst said.

To view the AGM webcast or read the Chairman and Managing Director addresses in full go to www.bendigoadelaide.com.au.

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