Full year profit has fallen 43 per cent and rising funding costs and low demand for loans makes forecasting future performance difficult, the Bendigo and Adelaide Bank says.
The regional lender made a net profit of $195 million in the 12 months to June 30, down from $342 million in the previous corresponding period.
Included in the net profit result was a $95 million writedown in the value of the bank's wealth management operations.
Cash profit, which excludes one-off financial items, was $323 million in the 12 months to June, down four per cent from the previous year.
Managing director Mike Hirst said high funding costs and low demand for loans had been felt across the banking sector.
Those factors, which are, in part, caused by the volatile global economic conditions, made predictions for the year ahead difficult, Mr Hirst said in a statement.
Bendigo's net interest margin, a measure of the profitability of its lending activities, was 2.1 per cent at June 30, down seven basis points from 12 months earlier.
Strong competition among banks for deposits was the main cause of lower margins, Bendigo said.
The bank's deposits grew 11 per cent to $40.7 billion in the year to June.
Bendigo declared a fully-franked final dividend of 30 cents per share.
Its shares were down 10 cents, or 1.15 per cent, at $8.59 at 1026 AEST.