Bendigo Bank reports mixed 1Q26 results as earnings decline

Bendigo and Adelaide Bank Limited reported 1Q26 unaudited cash earnings of A$120.7m, down 3.2% from the 2H25 quarterly average, while statutory NPAT reached A$110.0m. Net interest margin improved by 3 basis points to 1.91%, driven by an improved deposit mix, higher card transaction volumes, and seasonal Community Bank franchise fees, resulting in a 3.4% increase in net interest income. However, operating expenses rose by 7.6%, primarily due to seasonal factors and one-off items.

Residential lending contracted by 5.6% annualized to A$65.7bn, reflecting a cautious approach in third-party channels, while B&A lending grew 2.9% annualized to A$17.2bn. Customer deposits slightly decreased by 0.5% annualized to A$72.8bn. The bank successfully rolled out its Bendigo Lending Platform and refreshed in-app onboarding process, aiming for sustainable growth in the second half of the financial year.

The bank's balance sheet remains strong with a customer deposit funding ratio of 77%, an average Liquidity Coverage Ratio (LCR) of 136.5%, and a Net Stable Funding Ratio (NSFR) of 117.7%. The Common Equity Tier 1 (CET1) ratio stood at 10.93%, a 7 basis point decrease from the prior quarter. Risk-weighted assets decreased to A$38,999.5m.