Bendigo and Adelaide Bank 1H26 Result First Take

Bendigo and Adelaide Bank reported 1H26 cash earnings of A$256m, beating consensus by 4% due to strong NIM expansion and cost control. The bank is transitioning away from low-margin broker mortgages to retail deposits, supporting an improving earnings outlook.

Key Takeaways

• 1.BEN's 1H26 cash earnings of A$256m beat Visible Alpha consensus (A$247m) by 4% due to higher revenue and lower bad debt expenses.
• 2.Net Interest Margin (NIM) expanded to 1.92%, driven by a strategic shift toward high-margin retail deposits and away from low-margin broker-originated mortgages.
• 3.Operating costs fell 6.4% in 2Q26 following a 5% FTE reduction, suggesting productivity benefits will flow into the second half of the year.

Table of Contents

• Bendigo and Adelaide Bank Ltd. (BEN.AX): 1H26 Result First Take: 2Q Recovery Driven by NIM Beat
• Summary of key trends
• Summary of management's guidance vs expectations
• What are we looking for further clarity on during the conference call
• Bendigo and Adelaide Bank Investment Thesis
• Price Target Risks and Methodology
• Disclosure Appendix
• Price target and rating history chart(s)
• Regulatory disclosures

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