Highlights

  • Quarterly cash earnings declined as higher expenses outweighed improved income.
  • Deposit mix shifted toward lower-cost categories while term deposits decreased.
  • Lending volumes contracted over the quarter amid competitive market conditions.

Bendigo and Adelaide Bank (ASX:BEN) released its financial update for the quarter ended 30 September 2025, reporting unaudited cash earnings of AUD 120.7 m. This reflected a 3.2% decline compared with the 2H25 quarterly average. Statutory NPAT for the period was AUD 110.0 m. The bank noted that income growth was offset by elevated operating costs during the quarter.

Net interest income rose 3.4% against the 2H25 quarterly average, supported by a higher net interest margin (NIM). The NIM for 1Q26 was 1.91%, an increase of 3 bps from 4Q25. The uplift was attributed to a more favourable deposit mix, changes in term deposit repricing and asset composition, partly tempered by the impact of a lower cash rate. The exit margin at period end was marginally below the quarterly average.

Other income increased 6.8%, influenced by higher card transaction activity and seasonal variations in Community Bank franchise fees.

Operating Cost Movements

Operating expenses were up 7.6% compared with the 2H25 quarterly average. When adjusted for seasonal impacts and one-off items, the increase was 3.0%. Cost drivers included higher staffing-related expenses caused by additional working days, changes in leave balances and redundancy-related factors. The quarter also incorporated an unplanned remediation provision of AUD 3.7 m.

Credit expenses recorded a reversal of AUD 0.3 m, benefiting from a collective provision release within Agribusiness, partially offset by higher specific provisions in Consumer and Business exposures.

Balance Sheet and Funding Profile

The bank’s deposit mix showed continued movement toward lower-cost funding. Savings-type deposits increased 3.4% on an annualised basis and represented 53.0% of customer deposits, while term deposits declined to 34.7%. Residential lending fell 5.6% annualised over the quarter, reflecting a selective approach in highly competitive third-party channels.

Balance sheet indicators remained stable. The customer deposit funding ratio stood at 77%. The quarterly average Liquidity Coverage Ratio (LCR) was 136.5%, and the Net Stable Funding Ratio (NSFR) was 117.7% on a spot basis. The CET1 ratio closed the quarter at 10.93%, a reduction of 7 bps from the prior period.

Share Performance of BEN

BEN was trading 6.76% lower at AUD 11.860 per share as of 11 November 2025 at the time of writing.