The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is in focus today following its unaudited FY26 results, highlighted by a statutory net profit after tax of $375.1 million and a strong Common Equity Tier 1 (CET1) ratio of 11.34%.
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What did Bendigo and Adelaide Bank report?
- Statutory net profit after tax: $375.1 million (includes $49.0 million after tax for risk rectification plan and $9.8 million for legal penalties)
- Cash earnings (after tax): $530.2 million for FY26, up 3% on FY25
- Net Interest Margin (NIM): 1.95%, up 7 basis points on FY25; 2H26 NIM at 1.98%
- Lending growth: up 3.5% in 2H26, notably in residential, agribusiness, and portfolio funding
- Customer deposits: up 2.2% for the year to $74.1 billion
- Operating expenses down 2.1% over the half, reflecting productivity programs
What else do investors need to know?
Bendigo and Adelaide Bank is facing new APRA-imposed licence conditions following a review of its non-financial risk management. The Bank has committed to a multi-year risk rectification program, estimated to cost $70 million, aimed at uplifting risk capability across governance, compliance, and culture.
The Bank continues to absorb a $50 million capital charge in place since 1 January 2026 and has included provisions for legal penalties in its FY26 results. Lending momentum has increased, while credit expenses rose due to provisioning for economic uncertainty and geopolitical tensions.
What did Bendigo and Adelaide Bank management say?
Chief Executive Officer and Managing Director Richard Fennell said:
Our current non-financial risk management capabilities are clearly not where they need to be, and our risk rectification plan will be designed to drive a fundamental shift in our management of non-financial risk.
What's next for Bendigo and Adelaide Bank?
Looking ahead, Bendigo and Adelaide Bank will deliver its full audited FY26 results on 24 August 2026 and implement a revised financial reporting approach for FY27, bringing disclosures in line with other banks. The multi-year rectification program represents a strategic priority, with leadership committed to strengthening risk controls and supporting sustainable growth.
The Bank also expects to incur $100–123 million in FY27 for ongoing programs, including strategic partnerships, RACQ Bank integration, and adjustments to its employee bonus equity plan.
Bendigo and Adelaide Bank share price snapshot
The Bendigo and Adelaide Bank share price has struggled over the past 12 months with a decline of around 13%.
