Earnings release
Page 1
Page | 1 ASX Announcement 1Q26 Trading Update For the quarter ended 30 September 2025 Reported 11 November 2025 Bendigo Bank 1Q26 Update “Cash earnings are lower this quarter and flat on the prior comparative period (pcp), with stronger income offset by higher expenses. Net interest income was higher than pcp benefiting from higher net interest margin (NIM). Deposit mix improved over the quarter, with lower cost deposits growth of 3.4% annualised now representing 53.0% of customer deposits, while term deposits reduced to 34.7% of customer deposits. Residential loan balances contracted 5.6% annualised over the quarter, representing our cautious approach to competitive dynamics in third party channels. The balance sheet remains well positioned for a return to growth in the second half of the financial year. During the quarter, we delivered several strategic milestones which will position the bank for sustainable growth in the second half of this financial year and beyond. The Bendigo Lending Platform has been successfully rolled out across the branch network in all states, except for Victoria and Tasmania which will be rolled out in November. Bendigo’s refreshed in-app onboarding process went live at the end of October, with positive feedback on the experience including the ability to onboard new customers in a matter of minutes”. Richard Fennell, Managing Director and CEO Financial Performance for 1Q26 • Unaudited cash earnings of $120.7 million, down 3.2% on 2H25 quarterly average. Unaudited statutory NPAT of $110.0 million in the quarter. • NIM was 1.91%, up 3bps on 4Q25, with the benefit of improved deposit mix through growth in savings accounts, term deposit repricing and a more favourable asset mix offsetting the impact of a lower cash rate. The exit NIM was slightly lower than 1Q26 average. • Net interest income was up 3.4% on 2H25 quarterly average driven by higher NIM. • Other income was up 6.8%, driven by higher card transaction volumes and seasonality of Community Bank franchise fees. • Operating expenses were 7.6% higher due to seasonal factors and several one-offs, or 3.0% when adjusted for these items. These include: o Higher staff costs impacted by higher average quarterly workdays, movement in the value of leave balances and redundancy costs. o An unplanned additional remediation provision of $3.7 million. • Credit expenses ($0.3 million reversal for the quarter) benefited from a collective provision release in Agribusiness, partly offset by higher specific provisions in Consumer and Business. • Balance sheet remains strong with a customer deposit funding ratio1 of 77%, a quarterly average LCR of 136.5%, and spot NSFR of 117.7%. The CET1 ratio was 10.93%, down 7 bps on the prior quarter. 1 Deposit funding as a percentage of total funding . For personal use only
Page 2
Page | 2 ASX Announcement 1Q26 Trading Update Financial Summary for 1Q26 Change (%) Group Financial Results2 ($m) 1Q26 2H25 Qtr Avg. 1Q25 2H25 Qtr Avg. 1Q25 Net Interest Income 436.2 422.0 414.4 3.4% 5.3% Other Income 69.6 65.1 69.4 6.8% 0.2% Total income 505.8 487.1 483.8 3.8% 4.5% BAU Expenses (299.1) (272.6) (280.1) (9.7%) (6.8%) Investment Spend (29.7) (32.9) (27.0) 10.0% (9.7%) Operating Expenses (328.8) (305.5) (307.1) (7.6%) (7.1%) Operating performance 177.0 181.6 176.7 (2.5%) 0.2% Credit reversals 0.3 2.1 1.0 (Large) (Large) Cash earnings (after tax) 120.7 124.7 120.8 (3.2%) (0.0%) Non-cash items (after tax) (10.7) (281.7) (17.6) Large 38.7% Statutory net profit (after tax) 110.0 (157.0) 103.2 Large 6.6% Approved for release by: The Bendigo and Adelaide Bank Board Media enquiries James Frost Head of Public Relations m 0419 867 219 e james.frost@bendigoadelaide.com.au Investor enquiries Sam Miller General Manager of Investor Relations and ESG m 0402 426 767 e sam.miller@bendigoadelaide.com.au 2 The presentation of the Group Financial Results is consistent with the method outlined in Bendigo and Adelaide Bank’s 2025 Operating and Financial Review (Group Financial Results, page 32). For personal use only
Page 3
Page | 3 ASX Announcement 1Q26 Trading Update Quarterly Credit Risk Tables (1Q26) The following credit risk tables are reported semi-annually in the Basel III Pillar 3 Disclosures. They are included here to provide a quarterly overview of the ‘Credit quality of assets’ and ‘Credit risk exposures’. The ‘Overview of risk weighted assets (RWA)’ table is reported in the quarterly Basel III Pillar 3 Disclosures (released 11 November 2025). CR1 Credit Quality of Assets Table CR1 presents a breakdown of performing and non-performing exposures, along with the related provisions for credit losses. The reported exposures consist of on-balance sheet financial assets and off-balance sheet exposures that are subject to the credit risk framework. Amounts are in millions. 1. ‘Non-performing exposures’ defined in APRA Prudential Standard APS 220 Credit Risk Management. 2. ‘Regulatory category of specific provisions’ includes ECL accounting provisions for credit losses held against Stage 3 and St age 2 exposures that are under-performing. ECL is not computed for off-balance sheet exposures or debt securities. 3. ‘Off-balance sheet exposures’ are gross of any credit conversion factor (CCF) or credit risk mitigation (CRM) techniques. 30 Sep 2025 a b c d e g Gross carrying values of Of which ECL accounting provisions for credit losses on SA exposures Non-performing exposures1 Performing exposures Allowances/ impairments Allocated in regulatory category of Specific2 Allocated in regulatory category of General Net values (a+b-c) 1 Loans 1,204 82,016 360 79 281 82,860 2 Debt Securities - 10,649 - - - 10,649 3 Off-balance sheet exposures3 20 11,879 - - - 11,898 4 Total 1,223 104,543 360 79 281 105,406 For personal use only
Page 4
Page | 4 ASX Announcement 1Q26 Trading Update CR4 Standardised Approach – Credit Risk Exposure and Credit Risk Mitigation (CRM) Effects Table CR4 presents on-balance sheet and off-balance sheet exposures before and after CCF and CRM as well as associated RWA and RWA density by asset classes. Amounts are in millions. 1. RWA density is calculated based on unrounded values. 2. Retail includes ‘retail other’, margin lending and leases. 3. Other assets include cash items in the process of collection, cash owned and held at the ADI or in transit, investments in premises, plant and equipment, and all other fixed assets and all other exposures not specified elsewhere. 30 Sep 2025 a b c d e f1 Exposures before CCF and CRM Exposures post-CCF and post-CRM RWA and RWA density Asset classes On-balance sheet amount Off-balance sheet amount On-balance sheet amount Off-balance sheet amount RWA RWA density 1 Sovereigns and their central banks 10,735 11 10,735 6 9 0.1% 2 Non-central government public sector entities 76 78 76 30 53 50.0% 4 Banks 2,471 25 669 10 167 24.5% 5 Covered bonds 10 - 10 - 1 10.0% 6 Corporates 1,011 811 1,004 318 1,079 81.7% 7 Subordinated debt, equity and other capital - - - - - - 8 Retail2 2,200 2,778 2,197 1,111 1,226 37.1% 9 Real estate 75,491 8,175 75,474 4,332 30,357 40.2% Of which: residential property - owner occupied - standard 46,180 2,900 46,174 1,401 13,745 28.9% Of which: residential property - other - standard 17,762 2,737 17,757 1,178 6,997 37.0% Of which: residential property - other - non-standard 676 131 675 56 730 100.0% Of which: commercial property – not dependent on cashflows 8,593 2,062 8,590 1,489 6,588 65.4% Of which: commercial property - dependent on cashflows 1,899 226 1,897 93 1,552 78.0% Of which: land acquisition, development and construction 381 120 381 116 745 150.0% 10 Non-performing exposures 1,153 20 1,153 9 1,402 120.7% 11 Other assets3 1,259 - 1,259 - 978 77.6% 12 Total 94,406 11,898 92,576 5,816 35,272 35.9% For personal use only