Bendigo and Adelaide Bank (BEN) investor relations material

Executive summary

• Customer numbers rose 11% year-over-year to 2.9 million, with digital bank Up achieving its strongest growth and now serving 1.2 million customers.

• Full year results show resilience, with a shift to balanced lending growth and margin management in the second half after strong first-half demand outpaced deposit funding capacity.

• Strategic investments in digital platforms and productivity programs are expected to drive future value and efficiency, supported by the launch of a 2030 strategic plan.

• Customer deposits rose 6.6%, with 8.5% growth in lower cost deposits.

• The organization maintains a strong balance sheet, with CET1 capital well above targets and a household deposit to loan ratio of 73%.

Financial highlights

• Cash earnings for the year were $514.6 million, down 8.4% year-over-year, mainly due to lower noninterest income and higher funding costs in the first half.

• Operating expenses increased 7.7% year-over-year, driven by investment and inflation, but second-half expenses rose only 2.1%.

• Net interest margin (NIM) was flat at 188 basis points in 2H25, with repricing actions offsetting cash rate reductions.

• Statutory earnings after tax were -$97.1 million due to a $539.5 million goodwill impairment.

• Final dividend of $0.33 per share, fully franked, with a payout ratio of 74.8%.

Outlook and guidance

• Focus on optimizing the deposit franchise, enhancing productivity, and delivering sustainable growth to achieve an ROE above 10% by FY30.

• BAU expense growth targeted to remain at or below inflation through the cycle.

• Investment spend expected to remain flat in FY26, with a shift toward digital and productivity initiatives.

• Residential loan growth expected at or around system average, funded mainly by lower cost deposits.

• Anticipates continued margin stability, with benefits from repricing and digital deposit growth, but acknowledges competitive and rate headwinds.