Bendigo and Adelaide Bank (BEN) H2 2024 earnings summary

Executive summary

• Statutory net profit after tax rose 9.7% year-over-year to $545 million, while cash earnings declined 2.6% to $562 million.

• Customer numbers grew 9.1% to over 2.5 million, with digital bank Up increasing customers by 29%.

• Net Promoter Score of +27.9, well above industry average, reinforces position as a trusted challenger bank.

• Transformation initiatives included digital investments, brand consolidation, and IT simplification.

• Community impact highlighted by $40.3 million invested back into communities and $34.4 million in fraud blocked.

Financial highlights

• Statutory NPAT: $545 million, up 9.7% year-on-year; cash earnings: $562 million, down 2.6%.

• Total income increased 1.1% to $1,954.2 million; operating expenses up 5.8% to $1,122.8 million.

• Net interest margin stable at 1.94% in 2H24, but down 4 bps year-over-year to 1.90%.

• Final dividend of 33cps fully franked, up 3.1% on FY23; payout ratio 63.6%.

• CET1 capital ratio increased to 11.32%, reflecting strong capital management.

Outlook and guidance

• Expect more stability in net interest margin (NIM) in FY25, with competitive intensity stabilizing.

• BAU cost growth targeted to remain at or below inflation; investment spend to increase by $30–40 million in FY25 and FY26, mostly OpEx.

• Targeting above-system mortgage growth in FY25, leveraging new lending platform and digital channels.

• Medium-term targets: cost-to-income ratio toward 50% and return on equity above cost of capital.

• Official interest rates expected to remain steady into next year; unemployment rate anticipated to rise gradually.