April 9 (Reuters) – Australia’s Bendigo and Adelaide Bank posted a 12.8% rise in third-quarter earnings on Thursday, buoyed by wider margins and strong lending growth, and announced job cuts tied to new strategic partnerships with Infosys and Genpact.
The lender posted cash earnings after tax of A$137.9 million ($97.1 million) for the quarter ended March 31, compared with cash earnings of A$122.2 million a year earlier.
Net interest margin rose 1.98% for the period, up 6 basis points from the previous quarter.
At the same time, the bank announced partnerships with Infosys and Genpact, moves that it said will lead to changes in its technology and business operations teams.
“Decisions that impact our people are never easy. We acknowledge this will be a challenging time for our people and we are committed to lead these changes with care and respect,” said CEO and Managing Director Richard Fennell.
Bendigo and Adelaide Bank expects the changes to deliver annual run rate expense benefit of approximately A$65 million-A$75 million to be realised by fiscal 2028, while incurring upfront transition costs of roughly A$85 million-A$95 million.
Under the arrangements, the bank’s seven-year technology services deal with Infosys will provide access to artificial intelligence and digital talent, while its six-year tie-up with Genpact will “bring deep expertise in process optimisation and delivery”, the bank said in a statement.
Shares of the lender jumped as much as 5.4% to A$11.02, their highest level since February 23. The stock was the top percentage gainer on the benchmark S&P/ASX 200 index.
($1 = A$1.4198)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Sumana Nandy)
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