Adelaide Bank tips bumper profit

Brokers are tipping a 2001-2002 profit of about $40 million for Adelaide Bank, compared with last year's result of $34.1 million.

In a briefing lodged with the Australian Stock Exchange yesterday, group managing director Barry Fitzgerald said that he was “comfortable” with analysts' expectations of $40 million, which would outpace the profit growth of Australia's major banks, and he sees no reason to change that forecast.

Mr Fitzpatrick also stated that Adelaide Bank's loan approvals have increased by 72 per cent this year, while costs are falling and credit quality is “very good”. In addition, the margin lending business of the bank is growing very strongly.
Adelaide Bank still has a market share of around 12 per cent in South Australia while 80 per cent of its business is now interstate.