Regional banks 'doing well'

Although the past year has seen a number of challenges for the Australian banking sector, regional financial services firms are in "good shape".

Despite the difficulties experienced over the past 12 months, a new report claims that the country's regional banks have performed well.

A study of the regionals carried out by KPMG reveals that this section of the Australian banking industry has reported a total profit $494 million, with each bank recording profits.

However, while such earnings are down 58 per cent from the previous 12-month period, banking partner Martin McGrath claims this is of little surprise given "these challenging economic times".

"The regionals have emerged from a very challenging year in good shape," he adds.

Research from the firm also revealed a 16.4 per cent rise in deposits, with Bendigo & Adelaide Bank and Queensland Bank in particular seeing a rise in retail deposits - which could include money invested in transaction accounts and saver accounts.

"This reflects, in part, the strength of their branch networks and relationship with their customers," Mr McGrath claims.

Indeed, those looking to compare accounts could be interested in a recent Choice study revealing that Bendigo has the highest consumer satisfaction score across all the country's entire banking industry.

Posted by Joe Letts