(The following was released by the rating agency)
MELBOURNE (Standard & Poor‘s) Aug. 20, 2012--Standard & Poor’s Ratings Services today said that its ‘A-/A-2’ issuer credit ratings on Bendigo and Adelaide Bank Ltd. (BEN) are unchanged following BEN’s 2012 full-year results announcement, made today. Our outlook on BEN is stable.
Although BEN’s after-tax statutory profit for the 12 months ending June 30, 2012, of A$195.0 million was down significantly on the prior year, cash earnings of A$323.0 million were down a more modest 3.9%, reflecting a challenging operating environment and higher staff costs.
BEN importantly continues to actively manage its capital position to a level consistent with Standard & Poor’s expectations for its “strong” capital and earnings assessment. This has been demonstrated by the Aug. 8, 2012, sale of BEN’s 7.8% stake in IOOF, which increased Core Tier One capital by about 13 basis points (bps), and today’s announced sale of the subordinated notes BEN holds in its TORRENS securitization program, which increased BEN’s Core Tier One capital by a further 29 bps.