Highlights

• Bendigo and Adelaide Bank delivered improved FY26 earnings, with cash earnings rising 3.0% to AU$530.2 million and revenue increasing 5.1% to AU$2.046 billion.
• The bank strengthened its balance sheet position, maintaining a Common Equity Tier 1 ratio of 11.34% while increasing customer deposits and digital banking growth.
• Bendigo Bank advanced its growth strategy, expanding customer relationships, technology capabilities and community-focused banking initiatives.

Bendigo Bank Delivers Strong Financial Improvement

Bendigo and Adelaide Bank Limited (ASX: BEN) on 24 August 2026 reported a stronger FY26 performance, highlighting improved profitability, customer growth and progress across its 2030 Group Strategy. The bank continued to focus on strengthening its operating model, improving digital capabilities and building long-term customer relationships. However, risk management remained a key focus area following regulatory scrutiny during the year.

The bank recorded cash earnings of AU$530.2 million in FY26, representing a 3.0% increase compared with the previous year. Revenue increased 5.1% to AU$2.046 billion, while operating expenses rose 4.2% to AU$1.260 billion. Net interest margin increased by 7 basis points to 1.95%, supported by effective pricing strategies and proactive management of lending margins.

Strong Capital Position Supports Future Growth

Bendigo Bank maintained a robust capital position, with its Common Equity Tier 1 ratio reaching 11.34% as at 30 June 2026. The board approved a fully franked interim distribution of 33.0 cents per share on 15 September 2026 for the second half, bringing the total dividend payout for FY26 to 63.0 cents per share.

The bank continued strengthening its deposit base, with digital deposits increasing 37.3% during FY26. Customer numbers also expanded to 2.95 million, supported by growth across targeted lending segments, including Business and Agribusiness lending, which increased 8.8%.

Digital Expansion and Customer Growth Continue

Bendigo Bank continued investing in technology and operational efficiency through partnerships with global technology providers. The bank’s collaboration with Google enabled more than 5,000 employees to access Gemini Enterprise, supporting the adoption of artificial intelligence capabilities across the organisation.

The company also completed the migration of 180,000 Adelaide Bank customer accounts onto the Bendigo Bank platform and is preparing for the integration of the RACQ Bank retail loan and deposit portfolio, expected to bring approximately 90,000 Queensland customers to the bank.

Risk Management Remains Key Priority

Despite financial improvements, Bendigo Bank continues addressing risk management challenges. Following AML/CTF findings, APRA imposed a AU$50 million operational risk capital charge and introduced licence conditions requiring a comprehensive rectification plan and independent review.

With earnings momentum improving, a stronger digital platform and ongoing investment in risk capabilities, investors will closely monitor Bendigo Bank’s ability to achieve sustainable returns while progressing towards its long-term strategy.

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