Highlights

  • Bendigo Bank Capital Notes (ASX:BENPH) will pay an interim distribution of AUD 1.458 per note.
  • The distribution carries an annual Yield of 5.33% and is 100% franked.
  • The notes are scheduled to trade ex-distribution on 2 September 2026, with payment due on 15 September 2026.
  • Short-term interest rates, Bendigo Bank's capital position and Credit conditions remain important factors for holders.

Bendigo and Adelaide Bank Capital Notes (ASX:BENPH) are scheduled for their next interim distribution, with a fully franked payment of AUD 1.458 per note. The notes are due to trade ex-distribution on 2 September 2026, with the Record Date set for 3 September 2026 and payment scheduled for 15 September 2026. The distribution carries an annual yield of 5.33% and is 100% franked. BENPH is not an ordinary Bendigo Bank share or a deposit; it is a listed capital note with a different risk and income profile.

Distribution in focus

Bendigo Bank Capital Notes' (ASX:BENPH) interim distribution amounts to AUD 1.458 per note and is fully franked. The annual yield stands at 5.33%, providing an income component for investors willing to accept the additional complexity and risk associated with hybrid securities.

The ex-distribution date is 2 September 2026, followed by the record date on 3 September 2026. Eligible holders are scheduled to receive the payment on 15 September 2026. The 100% franking level may enhance the effective value of the distribution for eligible Australian investors able to utilise franking credits.

What is driving the security

BENPH forms part of Bendigo and Adelaide Bank's Additional Tier 1 regulatory capital. Its distributions depend on the bank remaining sufficiently profitable and capitalised, together with the applicable terms governing payments. Bendigo is one of Australia's larger regional banks, funded heavily by retail deposits and supported by a residential Mortgage book and community banking franchise.

The size of floating-rate distributions is influenced by prevailing short-term benchmark rates and the security's fixed issue margin. Changes in benchmark interest rates can therefore affect future cash payments, while Bendigo Bank's profitability, regulatory capital strength and broader credit conditions also influence the security's risk profile.

Why income investors may be watching

Bendigo Bank Capital Notes (ASX:BENPH) combine a 5.33% annual yield with 100% franking, which may appeal to eligible Australian investors seeking income outside ordinary equities.

The floating-rate structure means future distributions can move with short-term interest rates rather than remaining fixed. Investors may want to monitor benchmark rates, Bendigo Bank's profitability, regulatory capital position and broader credit-market conditions when assessing the income outlook.

Risks

BENPH carries materially different risks from deposits. Distributions can be discretionary and non-cumulative under the security terms, meaning a missed payment may not be recovered later. The notes are also subordinated within the issuer's capital structure.

Holders can face conversion, extension or write-down risk if specified regulatory or non-viability conditions occur. Floating-rate distributions may decline if benchmark interest rates fall, while market prices can fluctuate with changes in credit sentiment and interest-rate expectations.

Investor takeaway

Bendigo Bank Capital Notes' fully franked interim distribution of AUD 1.458 per note, payable on 15 September 2026, carries an annual yield of 5.33%. With 100% franking, the distribution may appeal to eligible income-focused investors, but BENPH remains a subordinated hybrid security rather than a deposit. Investors may want to monitor interest rates, Bendigo Bank's capital strength and the specific terms governing conversion and distributions.