Branch reports first half profit
The Bendigo Bank's Ettalong branch may be on the verge of a financial recovery, with a reported first half profit of $19,315 for the financial year 2010-2011.
The profit for the six months to December 31 last year (against accumulated losses of $915,792) is the first profit recorded by the branch since its inception six years ago.
The profit comes with an increase in first half revenue, from $289,513 in the previous year to $337,615.
It follows a substantial improvement in performance in the 2009-2010 financial year, where the annual loss was reduced from $187,941 to $32,034 on the back of a revenue increase from $413,285 to $596,015.
The change in fortunes also coincides with a renegotiation of the branch's overdraft facility with its parent bank, which lowered the interest rate by four per cent.
In July, the existing $380,000 overdraft facility with an interest rate of 11.14 per cent was replaced with a $300,000 commercial loan and an $80,000 overdraft, both of which were instituted with a 6.98 per cent interest rate.
However, against this, it has been reported that the Bendigo Bank is planning to claw back some of its margin share with branches.
Macquarie Equities has been reported as expecting the bank to "claw back approximately three basis points of margin from community banking partners".
Margin revenue accounted for $277,484 of the branch's total revenue of $596,015 last year.