Bendigo and Adelaide Bank (BEN) H2 2025 earnings summary

Executive summary

• Cash earnings after tax for FY25 were $514.6 million, down 8.4% year-on-year, while statutory net loss after tax was $97.1 million due to a $539.5 million goodwill impairment.

• Customer base grew 11% to 2.9 million, with digital bank Up growing 29% to 1.2 million customers.

• Lending portfolio increased 2.7% for the year, with strong digital and direct channel contributions.

• Dividend declared at 33 cents per share, fully franked and stable year-over-year.

• The 2030 Strategic Plan focuses on digital growth, operational simplification, and sustainable business practices.

Financial highlights

• Total income was $1,946.6 million, down 0.4% year-over-year, with net interest income for the half up 1.1% sequentially.

• Net interest margin for FY25 was 1.88%, flat in 2H25, with repricing actions offsetting cash rate headwinds.

• Operating expenses increased 7.7% year-on-year, mainly from investment spend and inflation.

• Cash return on equity was 7.34%, down 84bps year-over-year; 2H25 ROE was 7.13%.

• Net write-back in credit expenses of $14.7 million, reflecting high loan portfolio quality.

Outlook and guidance

• Targeting ROE above 10% by 2030, with dividend payout ratio of 60–80% of cash earnings.

• BAU cost growth to be contained at or below inflation through the cycle, with productivity improvements offsetting amortization headwinds.

• Investment spend expected to remain flat in FY 2026, with a shift toward digital and productivity initiatives.

• Expect improved Business & Agribusiness growth and savings growth above system in FY26.

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