Bendigo and Adelaide Bank Limited (ASX:BEN) reported its financial results for the year ended 30 June 2026, highlighting improved earnings, stronger deposit growth and continued progress on strategic transformation initiatives. The bank recorded cash Earnings of $530.2 million for FY2026, representing a 3.0% increase compared with the previous year, while statutory net profit after tax reached $375.1 million.

The result reflected continued focus on growing lower-cost deposits, improving operational efficiency and expanding digital banking capabilities. During the year, Bendigo and Adelaide Bank progressed several strategic programs, including technology upgrades, productivity initiatives and preparations for the integration of RACQ Bank’s Loan and deposit books.

FY2026 Results Reflect Deposit Growth and Improved Earnings Momentum

Bendigo and Adelaide Bank delivered improved earnings during FY2026, supported by higher-quality deposit growth and improved lending momentum during the second half of the year.

Cash earnings increased to $530.2 million, while second-half cash earnings reached $273.8 million, representing a 6.8% improvement compared with the first half. Income growth during the second half was supported by higher lending balances and improved net interest Margin performance.

Total lending increased 1.5% over FY2026, with Business and agribusiness lending providing key contributions. Business lending increased 12.5%, while agribusiness lending increased 3.8% during the year. Residential lending was slightly lower over the year, although digital channel lending continued to grow.

Customer deposits increased 2.2% during FY2026, supported by growth in lower-cost deposits. Lower-cost deposits increased 6.8%, while higher-cost deposits declined 2.8%. The proportion of lower-cost deposits within total customer deposits increased to 54.8%, compared with 52.5% in the prior year.

The bank’s net interest margin increased by six basis points during the second half to 1.98%, supported by funding management and changes in deposit composition.

Bendigo and Adelaide Bank maintained Credit quality during the period. Total credit expenses were $13.3 million, while impaired assets declined 11.1% to $115.1 million. Residential lending arrears and business lending arrears remained key areas monitored by the bank.

About Bendigo and Adelaide Bank and Its Banking Platform

Bendigo and Adelaide Bank is an Australian financial institution providing banking services across retail, residential lending, business banking, agribusiness and digital banking channels.

The bank operates through the Bendigo Bank Brand and other financial services platforms, focusing on customer relationships, community banking and technology-enabled financial services.

During FY2026, the bank continued expanding its digital capabilities. The Bendigo Bank app introduced in-app customer onboarding, while the Bendigo Lending Platform was rolled out across all branches. These initiatives were designed to simplify customer interactions and improve lending processes.

The bank also continued developing Up, its digital banking platform. During FY2026, Up recorded lending growth of 56.3% to $2.6 billion, while deposits increased 44.8% to $4.1 billion.

Bendigo and Adelaide Bank’s strategy combines traditional banking services with digital platforms, allowing the company to serve customers through branch networks as well as online channels.

Recent Development: Productivity Program and RACQ Bank Integration

During FY2026, Bendigo and Adelaide Bank continued progressing its productivity program, supported by strategic partnerships aimed at improving operational efficiency.

The second phase of the productivity program commenced during the year, with implementation involving restructuring costs and technology-related changes. The bank expects the program to deliver annual cost benefits from FY2028.

The company also completed the final phase of its multi-year core banking consolidation in December 2025, simplifying its technology environment and supporting future digital initiatives.

Another significant development was the planned Acquisition of RACQ Bank’s loan and deposit books. The transaction is expected to expand Bendigo and Adelaide Bank’s Queensland presence, with the company preparing to integrate approximately 90,000 RACQ Bank customers.

The bank also continued investments in artificial intelligence and Cybersecurity capabilities through its technology partnerships. More than 5,000 employees were reported to be using AI-based productivity tools during the year.

Bendigo and Adelaide Bank declared a fully franked final Dividend of 33 cents per share for FY2026.

Sector Context and Position Within the S&P/ASX 200 Financial Sector

Australian banks operate in an environment influenced by interest rates, lending demand, deposit competition, regulatory requirements and economic conditions.

The banking sector has increasingly focused on improving operational efficiency through digital transformation, automation and technology investment. Customer expectations around mobile banking, faster onboarding and digital lending processes continue influencing strategic priorities across financial institutions.

Deposit competition remains an important Factor for banks, as funding costs and customer deposit behaviour influence margins. Institutions with diverse funding sources and strong customer relationships continue focusing on maintaining deposit stability.

Bendigo and Adelaide Bank’s FY2026 performance reflected these broader sector themes, with the bank balancing Investment in technology and productivity programs while maintaining lending growth and credit quality.

Risks and Uncertainty

Bendigo and Adelaide Bank remains exposed to changes in economic conditions, Interest Rate movements and competition within the Australian banking sector.

Changes in Unemployment levels, property market conditions and household financial pressures may influence lending Demand and credit performance.

The bank’s transformation programs involve technology investment, restructuring activity and implementation risks. The expected benefits from these initiatives depend on successful execution and adoption across operations.

The integration of RACQ Bank’s loan and deposit books will also require careful management to ensure operational continuity and Customer Service standards.

Catalysts Investors Can Watch

Future developments for Bendigo and Adelaide Bank may include progress on the RACQ Bank integration, further digital banking adoption and delivery of productivity program outcomes.

Investors may monitor deposit growth trends, lending activity, net interest margin movements and credit quality indicators.

The bank’s ability to continue improving operational efficiency while maintaining customer growth and Balance Sheet discipline will remain important areas of focus.