Elders Rural Bank has withstood recent market volatility to post a net profit of $19.4 million for the six months ended December 31, 2007.
The bank, a joint venture between Futuris Corporation and Bendigo Bank Limited, reported that loans under management had increased by 16 per cent to $3.377 billion, and that deposits had also risen by 16 per cent to stand at $3.395 billion.
Commenting on the result, the bank’s chief executive, Paul Hutchinson, said it was pleasing in light of ongoing adverse seasonal conditions and higher funding costs associated with the current state of credit markets.
He said that while Elders Rural Bank had no direct exposure to the sub-prime mortgage market, it had experienced an increased cost of funding as a consequence of the credit squeeze.
