Bendigo and Adelaide Bank has posted a relatively flat half-year result amid what it says are funding challenges and intense competition in the sector.
The company has kept dividends steady at 34¢ but says lending growth remains strong across its retail and broker channels.
The bank posted a net profit of $209 million, up 0.1 per cent from the previous period. Cash earnings were up 0.4 per cent to $224.7 million.
The bank said the May and August cash rate reductions, as well as the need to have extra liquidity for the Keystart portfolio acquisition, put pressure on the bank's net interest margins during the half.
It also saw a rise in bad and doubtful debts, up $16.3 million to $39.8 million during the period, in part due to increasing Great Southern write-offs as collection from the collapsed agribusiness scheme continued, it said.
Managing Director Mike Hirst said the bank remained focused on customers.
"Our desire to provide our customers with the best overall experience in financial services led to strong lending growth across retail and partner channels, which has resulted in the bank delivering growth above system, despite competition remaining intense," he said.
The bank's dividend is fully franked and payable on March 31.