The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is in focus today after the bank announced cash earnings of $256.4 million for the half year to December 2025, up 2.8% on the previous half but down 3.3% year on year. The board declared a fully franked interim dividend of 30 cents per share, holding steady compared to the same period last year.
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What did Bendigo and Adelaide Bank report?
- Cash earnings of $256.4 million, up 2.8% on the prior half
- Statutory net profit after tax of $230.6 million
- Net interest margin increased by 4 basis points to 1.92%
- Fully franked interim dividend of 30 cents per share
- Customer deposits grew 1.1% over the half; lending balances contracted 1.9%
- Total operating expenses rose 4.2% from the previous half
What else do investors need to know?
Bendigo and Adelaide Bank continued its digital transformation, rolling out the Bendigo Lending Platform across all branches and expanding app functionality. The bank completed the migration of 180,000 Adelaide Bank customer accounts to a single core platform, simplifying its operations.
A key strategic move included the pending acquisition of RACQ Bank's loan and deposit book, set to add around 90,000 new customers and boost the bank's presence in Queensland. The bank is also launching a multi-year AML/CTF improvement program, with up to $90 million expected spend, including about $15 million in the upcoming half.
What did Bendigo and Adelaide Bank management say?
Managing Director and CEO Richard Fennell said:
This result reflects good progress on our strategy over the half, with our deposit-led approach to drive sustainable loan growth gaining momentum and improving our earnings. This improvement was largely driven by the growth in lower cost deposits benefiting margin, as well as a reduction in costs in the second quarter. In addition, we made the strategic decision to exit our legacy mortgage partner business which impacted loan growth for the half. We remain confident that our residential lending book will return to growth over the second half of the financial year. […] We reaffirm our objective to deliver improved returns to shareholders, targeting a ROE of above 10% by 2030.
What's next for Bendigo and Adelaide Bank?
Looking forward, the bank is focusing on completing its AML/CTF remediation program and preparing for the integration of RACQ Bank customers. Management highlighted further progress with technology partnerships and productivity initiatives aimed at holding costs in line with inflation.
Despite broader economic challenges, Bendigo and Adelaide Bank sees its balance sheet as resilient and well positioned for future growth. The board remains focused on achieving stronger returns and supporting its strategic roadmap to 2030.
Bendigo and Adelaide Bank share price snapshot
Over the past 12 months, Bendigo and Adelaide Bank shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
