Bendigo and Adelaide Bank (ASX:BEN) delivered a resilient yet complex financial performance for the half-year ended Dec. 31, 2025, reporting a cash earnings after tax of $256.4 million.
While this reflects a 2.8% increase over the previous half, it represents a 3.3% decline compared to the same period last year.
Statutory net profit landed at $230.6 million, supported by a strengthening net interest margin of 1.92%.
Despite the mixed earnings, the board maintained shareholder confidence by declaring a stable, fully franked interim dividend of 30 cents per share.
Managing Director Richard Fennell attributed the results to a "deposit-led approach" aimed at sustainable growth.
However, the bank’s residential lending book saw a slight contraction to $65.1 billion, impacted by the strategic decision to exit its legacy mortgage partner business.
Key milestones include the full rollout of the Bendigo Lending Platform and a high-profile AI and cyber risk partnership with Google.
Furthermore, the bank successfully migrated 180,000 Adelaide Bank accounts to its core platform, completing a multi-year simplification project.
The bank has committed $70 million to $90 million over three years to bolster its AML/CTF frameworks.
The upcoming acquisition of RACQ Bank’s books is set to increase its Queensland market share significantly.
With a Common Equity Tier 1 ratio of 11.37%, the bank remains well-capitalised as it targets a return to lending growth and a long-term ROE above 10% by 2030.