Company Reports

As prereleased last week, Bendigo and Adelaide Bank's fiscal 2026 cash profit increased 3% to AUD 530 million, with modest loan growth and higher net interest margin more than offsetting 4% operating expense growth. The final dividend of AUD 0.33 per share is fully franked.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits, it is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Australia's banking regulator, APRA, is unsatisfied with Bendigo and Adelaide Bank's progress on nonfinancial risk, and is forcing a comprehensive rectification program on the bank. Bendigo expects the program to take three years and cost AUD 70 million. Shares fell 5% on Aug. 18 on the news.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits it is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Bendigo and Adelaide Bank's third-quarter fiscal 2026 profit increased 8% on the average of the previous two quarters, driven by lower operating expenses. The bank also announced two technology partnerships expected to underpin material cost savings by fiscal 2028. Shares jumped 9%.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Bendigo and Adelaide Bank's first-half fiscal 2026 NPAT fell 3% to AUD 256 million, with modest loan growth and net interest margin improvement outpaced by 6% higher operating costs. In addition to inflationary cost pressure, the bank is investing in a technology rebuild to cut costs and grow.

APRA requires Bendigo to hold an additional AUD 50 million in capital for operational risks, due to deficiencies in its identification, mitigation, and management of anti-money laundering and terrorism financing risk. AUSTRAC is also investigating after identifying serious potential contraventions.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Positive momentum was the focus of Bendigo's investor update, with management pointing to a refreshed banking app and a new lending platform as foundations to help the bank increase loans in line with the market. The balance sheet acquisition of RACQ Bank is expected to be ROE-accretive.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

An independent report has highlighted deficiencies in Bendigo and Adelaide Bank's approach to identification, mitigation, and management of anti-money laundering and terrorism financing risk. With details scant and the costs to remedy shortcomings not estimated, shares dived 7%.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Bendigo and Adelaide Bank's first-quarter fiscal 2026 profit fell 3% on the average of the previous two quarters, hurt by 8% operating expense growth. Despite the home loan book contracting by around 1.5%, net interest margins improved modestly, driving 4% revenue growth.

Bendigo and Adelaide Bank is one of Australia’s top 10 largest banks, but by loans and deposits is much smaller than the four major banks. A higher cost/income ratio and funding costs make it difficult to generate attractive returns on shareholder capital in a competitive market. The acquisitions of Adelaide Bank, Rural Bank, and Delphi Bank have helped scale and diversify the loan book, but revenue gains and synergy benefits to date have failed to generate excess returns on equity given the larger capital base.

Bendigo and Adelaide Bank's fiscal 2025 cash profit fell 8% to AUD 515 million, with modest income growth and lower loan impairment expenses not enough to offset 8% higher operating costs. In addition to inflationary cost pressure, the bank is investing in growth and a technology rebuild.

Bank share prices performed well in the three months to June 30, 2025. Credit growth has continued to trend higher, while credit stress has been low. Australian banks reported flat to modestly softer net interest margins in the March quarter.

Bendigo and Adelaide Bank's third-quarter fiscal 2025 profit fell 8% on the first-half average. It was hurt by lower noninterest income and didn't benefit from the release of loan impairment provisions which boosted first-half profits. Net interest margins were flat.