Bendigo and Adelaide Bank (ASX:BEN) delivered a fiscal third-quarter cash profit of AU$122 million, down 8% from the previous quarter but about 2% ahead of expectations, driven by lower-than-anticipated bad and doubtful debt charges, according to a May 23 report by Jarden Research.

On May 22, the Bank reported fiscal third quarter cash earnings of AU$122.2 million, 7.8% below the fiscal first half quarterly average of AU$132.6 million.

Total income for the three months ended March 31 was AU$475.7 million, down from the fiscal first half quarterly average of AU$486.2 million, the Bank said.

Revenue fell 2% quarter-on-quarter due to weaker non-interest income, including lower homesafe and account fees, partially offset by a 1% decline in costs from reduced staffing and delayed investment spending, Jarden noted.

The firm also observed that a sharp improvement in return on equity (ROE) appears unlikely in the near term, with the Bank posting an ROE of around 7% in the fiscal first half, well below its estimated 10% cost of equity.

Jarden maintained Bendigo and Adelaide Bank's neutral rating but raised its price target to AU$11.60 from AU$11.50.