Bendigo Bank: Solid Margins Amid Short Term Headwinds

Bendigo Bank’s (ASX: BEN) first-quarter FY26 update reflected resilient performance despite a modest earnings dip. Unaudited cash earnings stood at AU$120.7 million, down 3.2% from the previous half, with statutory NPAT of AU$110 million. Net interest margin rose to 1.91%, benefiting from improved deposit mix and term deposit repricing. Customer deposits grew to AU$72.8 billion, with low-cost deposits representing 53% of total, while residential lending contracted 5.6% annually amid competitive pressures. Operating expenses increased 7.6% due to seasonal factors and one-off costs, including higher staff costs and a AU$3.7 million remediation provision. Balance sheet metrics remained robust with CET1 at 10.93% and liquidity ratios above regulatory requirements. Strategic milestones included the rollout of the Bendigo Lending Platform and enhanced digital onboarding across branches, positioning the bank for sustainable growth in the second half of FY26.

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