BEN Analysis: 1Q26 Trading Update

Event: 1Q26 Trading Update | Date: 2025-11-11 | Source: Bendigo and Adelaide Bank Announcement

1Q26 Update Reveals NIM Rebound But Cost Pressures Mount

Bendigo and Adelaide Bank released its 1Q26 trading update on November 11, 2025, highlighting a recovery in net interest margin (NIM) to 1.91%, up 3 basis points from FY25's 1.88%, driven by deposit mix improvements and pricing discipline. However, the bank reported higher expenses weighing on profitability, with total operating expenses rising 7.6% to $328.8 million, including $29.7 million in transformation investments and $3.7 million in unplanned remediation costs. Residential lending contracted at an annualized rate of -5.6%, reflecting a cautious approach to competitive dynamics, while business lending grew 2.7% and deposits increased 3.4%. Credit quality remained strong with net credit impairment reversals of $0.3 million, and capital positions were stable with CET1 at 10.93%. The update, available via the company's ASX announcement, led to a more than 4% share price decline to $12.18 as the market reacted to the expense pressures offsetting the NIM gains.