Australia-based Bendigo and Adelaide Bank (ASX:BEN) has announced a 189.5 per cent rise in annual net profit and claims it has "sound reasons for restrained optimism".

The bank's net profit jumped to $242.6 million for the year ending June 30, 2010 from $83.8 million in the previous corresponding period.

Revenue reached $1.135 billion after climbing 29.9 per cent.

The bank group's managing director Mike Hirst said Bendigo and Adelaide had given a "strong result," although volatility and uncertainty were still a concern for the global economy.

Nevertherless, the company had "sound reasons for restrained optimism," said Mr Hirst.

"The effects of the GFC continue to dominate market sentiment, and will likely cloud the outlook for the 2010-2011 financial year. However, this uncertainty and volatility also presents opportunities for a business like ours with a respected brand, growing customer base and proven track record for opportunistic and value creating M&A activity. All this is complemented by a well-funded and low-risk balance sheet," Mr Hirst said.

Cash earnings rose 60 per cent from the prior year, coming in at $291 million. Net interest margins averaged 2.09 per cent for 2009-10, an increase from 1.66 per cent in the previous corresponding period.

The bank issued a fully franked final dividend of 30 cents per share, which it said was ''consistent with the board's policy of paying out 60-70 per cent of cash earnings as dividends".

''Our business lending, residential mortgage and consumer lending portfolios all have strong growth momentum and are currently exceeding system growth,'' Mr Hirst said.

''The fundamentals in our retail, margin lending and third-party mortgages businesses also remain robust.''

"We look forward to growing our business, improving our financial performance and exceeding the expectations of our customers, partners and shareholders."