The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price could be on the move as the bank delivered cash earnings of $530.2 million for FY26, up 3.0%, with a fully franked final dividend of 33 cents per share.
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What did Bendigo and Adelaide Bank report?
- Cash earnings up 3.0% to $530.2 million for the year
- Statutory net profit after tax of $375.1 million
- Fully franked final dividend of 33 cents per share
- Net Interest Margin rose to 1.98% in the second half
- Lending balances increased 3.5% in the second half; total lending up 1.5% over the year
- Business and Agribusiness lending up 8.8%; residential lending down slightly
What else do investors need to know?
The bank advanced its digital transformation, rolling out in-app customer onboarding and extending its Bendigo Lending Platform to all branches. Nearly half of digitally eligible customers now join via the app, while 80% of home loans are written through the lending platform. Partnerships with Infosys and Genpact support phase two of the productivity program, with restructuring costs recognised and further savings targeted from FY28.
Bendigo and Adelaide Bank is also growing in Queensland, with the acquisition of RACQ Bank's loan and deposit books expected to complete in the first half of FY27. Risk management remains in focus, with a new multi-year program and a $70 million provision to support uplift in non-financial risk management included in FY26 results.
What did Bendigo and Adelaide Bank management say?
Bendigo and Adelaide Bank's CEO, Richard Fennell, commented:
The full year result demonstrates our ongoing disciplined approach to driving quality deposit growth and delivery against our strategic agenda. Our earnings have again improved over the half, benefiting from the continued growth in lower cost deposits driving higher margin… The Bank has regained lending momentum following a return to growth in our residential lending book through the second half. We remain committed to delivering improved returns to shareholders and are focused on delivering our target of an ROE above 10% by 2030.
What's next for Bendigo and Adelaide Bank?
Looking ahead, management aims to keep investing in productivity, technology, and risk management, leveraging new digital initiatives and partnerships. The integration of the RACQ Bank business is expected to enhance the bank's scale, particularly in Queensland, while ongoing focus on deposit growth and lending momentum underpins future earnings.
While economic uncertainty and cost-of-living pressures may affect industry headwinds, Bendigo and Adelaide Bank continues targeting returns on equity above 10% by 2030, supported by ongoing transformation efforts.
Bendigo and Adelaide Bank share price snapshot
The Bendigo and Adelaide Bank share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of 20%.
