The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is in focus after the bank posted unaudited cash earnings of $137.9 million, up 7.6% on the previous half-year's quarterly average, and announced two new strategic partnerships aimed at ramping up innovation and efficiency.
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What did Bendigo and Adelaide Bank report?
- Unaudited cash earnings of $137.9 million for 3Q26, up 7.6% from the 1H26 quarterly average
- Statutory net profit after tax of $109.4 million for the quarter
- Net interest margin improved to 1.98%, up 6 basis points on 2Q26
- Lending growth annualised at 5.6% for the quarter, with strong momentum in both residential and business lending
- Operating expenses were 4.1% lower than the previous quarter, largely due to reduced staff costs
- Credit expenses incurred were $2.1 million
What else do investors need to know?
Bendigo and Adelaide Bank kicked off the next phase of its Productivity Program, which includes newly announced partnerships with Infosys and Genpact. The Infosys collaboration brings a seven-year boost to technology services, giving the bank access to more advanced software and AI expertise, while the six-year deal with Genpact focuses on process optimisation.
These partnerships are expected to enhance efficiency, build on existing technology platforms, and help respond more quickly to customer needs. However, they'll also result in changes to the workforce, especially in technology and business operations teams, with consultations to follow.
Significant operational improvements are targeted, with ongoing expense benefits of $65–$75 million per year expected by FY28. Upfront transition costs of $85–$95 million are mostly expected to fall in FY27.
What's next for Bendigo and Adelaide Bank?
Looking ahead, Bendigo and Adelaide Bank remains focused on accelerating its 2030 strategy by investing in technology and process excellence. Management says the operational efficiencies achieved through these partnerships will support expense guidance, aiming for business-as-usual costs to remain no higher than inflation through the cycle.
The bank is also keeping a close eye on global developments and potential impacts on credit risk, while continuing to support its customers, particularly amid a challenging external environment.
Bendigo and Adelaide Bank share price snapshot
Over the past 12 months, Bendigo and Adelaide Bank shares have risen 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 21% over the same period.
