Bendigo says regulation holding it back
Bendigo Bank has claimed tough regulatory requirements are holding it back.
In its annual report Bendigo says it will cut its Internet and telephone account-transaction fees to reward its loyal customers and attract potential new ones.
The compliance costs placed on Bendigo are putting the bank at a competitive disadvantage compared with larger banks, the report states, and this disadvantage is exacerbated by capital requirements and supervisory costs. A larger proportion of Bendigo's annual revenue goes to the banks' supervisor, APRA, than is paid by bigger banks. The chairman and managing director said they will “continue to make representations on these issues”.
The bank rewarded its managing director Rob Hunt with a modest 8.3 per cent pay rise, to $577,328, one of the lowest salaries for a major bank executive – despite Bendigo reporting a 47 per cent leap in profit to $48.8 million.