Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — FY2025 Earnings Presentation
64 slides from Bendigo & Adelaide Bank's earnings presentation, Aug 25, 2025
Slide 1: Results Presentation
Results Presentation For the full year ended 30 June 2025 Released 25 August 2025 Bendigo and Adelaide Bank Limited ABN 11 068 049 178
Slide 2: Acknowledgement of Country
Acknowledgement of Country I would like to begin today by acknowledging the Traditional Custodians of the many lands that we are gathered on. Specifically, I would like to respectfully acknowledge the Gadigal People of the Eora Nation. I would also like to acknowledge the Traditional Custodians of t
Slide 3: Agenda
Agenda 01 02 03 04 05 Overview FY25 Results Strategy Update Q&A Summary Richard Fennell, Andrew Morgan, Richard Fennell, Richard Fennell & Richard Fennell, Chief Executive Officer Chief Financial Officer Chief Executive Officer Andrew Morgan Chief Executive Officer and Managing Director and Managing
Slide 4: Overview: Key messages
Overview Key messages • Customer numbers up 11% year on year, to 2.9 million customers, NPS +36.4 above industry1 • In the second half, moderated growth and stabilised margin as cash rate reduced (2H25 NIM: 1.88%) • Bendigo Lending Platform and Direct channels drove 71% of total residential lending
Slide 5: Financial and operating performance
Financial and operating performance Funding costs impacted income while operating expenses were higher FY25 FY24 FY25 2H25 ($m) ($m) v FY24 v 1H25 Key points – full year • Income impacted by margin and Total income 1,946.6 1,954.2 (0.4%) 0.2% reduced transaction account fees Operating expenses 1,209
Slide 6: FY25 Divisional results
FY25 Divisional results EasySaver deposits and residential lending continue to grow in Consumer, while B&A returns to loan growth Consumer FY25 Cash Earnings1 ($m) Business & Agribusiness • 0.3% increase in cash earnings • 10.3% decrease in cash earnings • 5.5% increase in operating • 3.3% increase
Slide 7: Up: Number of Customers
Up Clear path to profitability Customer Up - # of customers by age June 2022 v June 2025 1.2 million Upsiders1 29% Customer Growth (YoY) 18 – 35yo +55.2 NPS2 70,000 <$50 Cost of Acquisition3 60,000 70% of new customers from referrals Home lending stage (25 – 55yo) 50,000 Up balances Number of Custom
Slide 8: Digital Channels
Digital Channels Digital settlements reflects refined pricing in 2H25 % of residential lending settlements from digital1 Digital deposits2 ($m) Bendigo Bank Up $2,813 19.3% 19.1% Originated through multiple channels $2,575 $2,452 Direct: Digital Deposit Growth HoH YoY 16.3% Bendigo Bank 19% 58% 16.2
Slide 9: Setting the benchmark for trust and societal impact
Setting the benchmark for trust and societal impact Feeding into the prosperity of our customers and communities People Customers Communities Environment Belonging at BEN Fraud and Scams Community Banks Climate Strategy • Gender Equality 3 out of 4 • Blocked $47 million in • $416 million returned to
Slide 10: FY25 Results
FY25 Results Andrew Morgan – Chief Financial Officer 10
Slide 11: Overview of key 2H25 financials
Overview of key 2H25 financials Disciplined growth supported by a robust balance sheet Balance sheet 2H25 P&L 2H25 Total lending $85.9b 2.8% Net interest income $844.1m 1.1% Residential lending $66.6b 2.2% Operating expenses $545.1m (0.3%) (ex investment spend) Customer deposits $72.9b 1.2
Slide 12: Cash earnings vs Statutory earnings
Cash earnings vs Statutory earnings Result impacted by goodwill impairment charge and restructure costs 2H25 ($m) 1H25 ($m) 2H24 ($m) Key items Cash earnings (after tax) 249.4 265.2 293.8 • Pre-announced impairment charges of $539.5m related to Non-cash items, previously disclosed1: goodwill written
Slide 13: Total income
Total income Flat income mostly due to higher AIEA offset by lower account fees Income - 2H25 v 1H25 1 AIEA : +3.0% NIM: flat Days count: 3 fewer days (7.1) 9.4 (0.5) 974.2 972.4 +0.2% 1H25 Net interest income Other income ex Homesafe Homesafe2 2H25 Income callouts: Key considerations: • NII driven
Slide 14: Net interest margin
Net interest margin Result reflects repricing activity in both lending and deposits, despite two cash rate cuts NIM - 2H25 v 1H25 1.88% Deposits +1bp 1.88% (0.01%) 0.02% (0.01%) 0.01% (0.01%) Residential lending1 +2bps B&A lending (2bps) Savings (2bps) Asset mix +1bp Offset accounts (1bp) Wholesale
Slide 15: Residential lending
Residential lending New business by LVR (%) Disciplined growth in 2H25 driving improved returns 10.8% 9.6% 9.2% 11.9% • Total portfolio up 7.6% for the year (1.4x system) and 2.2% for the 50.4% 46.1% half 53.8% 56.0% • Average LVR trending downwards over last two years: >40% of new 40.4% 42.1% origi
Slide 16: Strength of deposit franchise
Strength of deposit franchise Branch network provides stable funding source APRA household deposit/loan ratio1 • Growth of 6.6% for the year and 1.2% for the half • Proprietary and Community Bank branch networks remain a critical and stable source of deposit funding – up 8.0% • Digital deposit momen
Slide 17: Operating expenses
Operating expenses Cost growth driven by wage and price inflation and tech costs partly offset by productivity benefits Contribution +1.4% 0.1% (0.7%) (0.5%) +1.8% to movement +0.3% 611.0 0.4 (4.0) 10.8 -13.1 +2.1% 8.6 20.6 (3.2) 8.5 600.2 598.4 • Wage and price inflation • Lower FTE in Operations •
Slide 18: Credit Quality
Credit Quality Credit metrics remain sound Credit expense ($m)1 Gross impaired loans ($m) 1.1 % gross loans (1.1) (2.0) 0.15 0.15 (0.9) (3.1) (9.9) (4.2) 135.7 127.4 129.5 (0.6) (10.5) 2H24 1H25 2H25 Collective Specific Jun-24 Dec-24 Jun-25 Gross Impaired Loans BEN provision coverage2 over time Loan
Slide 19: Funding and liquidity
Funding and liquidity Stable and diversified funding sources Funding profile ($b) 2.9 22.1 22.3 20.0 21.3 • Customer deposits as a percentage of total funding continues to increase 26.0 25.4 26.2 26.1 76.6% • Lending activities continue to be funded Customer deposits 46.7 through stable sources 42.4
Slide 20: Capital and dividends
Capital and dividends Capital position remains strong CET1 movement - 6 months (%) 0.53 (0.44) 0.02 (17bps) (0.09) (0.19) Resi Mortgages (14bps) Other CRWA (5bps) 11.17 11.00 1 2 Dec-24 Earnings Dividends Capitalised expenses Other RWA Jun-25 • Net capital consumption over the half has moderated in
Slide 21: Strategy Update
Strategy Update Richard Fennell – Chief Executive Officer and Managing Director 21
Slide 22: Strengths
Strengths Leveraging our strengths for the next phase of growth Brand powered by trust and reputation Agility • One of Australia’s most trusted • Up - 1.2 million customers in six years institutions • Up - efficient change management 1 • NPS +36.4 above industry with ~3 updates per day • Up NPS of +
Slide 23: Building scale through innovation
Building scale through innovation To feed into the prosperity of OUR PURPOSE our customers and communities OUR We are deepening our focus CUSTOMERS on our target customer segments OUR STRATEGIC 4 Set the 5 Reinvent PILLARS 1 Make life easy 2 Operate simply 3 Deepen customer with digital and efficien
Slide 24: BEN focus in the next two years
Building blocks to ROE BEN focus in the next two years Execution will drive 3. Sustainable consistent delivery growth Disciplined approach 2. Productivity to capital allocation Operate efficiently 1. Optimise deposit franchise Strengthen digital deposit capability 24
Slide 25: 1. Optimise Deposit Franchise
Bendigo Bank - Digital Deposit Sales1 42.7% 39.5% 38.6% 22.6% 1. Optimise Deposit Franchise Dec-23 Jun-24 Dec-24 Jun-25 Strengthen digital deposit capability Lower Cost Deposits ($b)2 7.0% +8.5% 37.0 38.3 34.6 35.3 • New Digital onboarding experience via Bendigo App • Increased savings accounts for
Slide 26: 2. Productivity
Residential Lending1 - Time to Decision (days) & Assessment (hours) 14.0 13.0 2. Productivity 6.0 6.0 4.5 4.0 3.0 2.2 Operate efficiently FY22 FY23 FY24 FY25 Time to Decision (days) Time to Assessment (hours) • Next phase of technology rebuild Total FTE (excl. contractors) • Strategic partnerships t
Slide 27: 3. Sustainable growth
Average mortgage – NIM1/CRWA (new business) 47% 3. Sustainable growth Dec-23 Jun-24 Dec-24 Jun-25 Disciplined approached to capital allocation Business & Agribusiness – Loan Growth ($b) 6.8% • Focusing on growth in channels that meet, or are 16.6 17.1 16.1 above, our cost of capital through improved
Slide 28: ROE above 10% by 2030
Our Financial Targets Building blocks to ROE TARGETS ROE above 10% by 2030 Dividend payout ratio 60%-80% of cash earnings CET1 Board target of >10% OUTLOOK Expenses Growth Credit • BAU costs no higher than inflation, through the • Improved B&A growth in FY26 • 5-8 bps of loans through cycle the cycl
Slide 29: Q&A
Q&A Richard Fennell – Chief Executive Officer and Managing Director Andrew Morgan – Chief Financial Officer 29
Slide 30: Summary
Summary Richard Fennell – Chief Executive Officer and Managing Director 30
Slide 31: Investor Summary pack
Investor Summary pack B. Bendigo Bank
Slide 32: Who we are
Who we are Overview • 167 years of history, amalgamation of more than 80 different organisations 2.86 • 2.22% market share +7,000 million employees • 428 total branches (307 Community Bank and private franchise, 121 company owned)2 customers • Multi-channelled: • Residential lending – Retail, Digita
Slide 33: Net interest margin
Net interest margin Result reflects headwinds in loan and deposit pricing, offset by replicating portfolios benefits NIM FY25 v FY24 Savings (2bps) Deposit +8bps 1.90% TD’s (2bps) Capital +4bps Wholesale (3bps) 1.87% 0.01% 1.88% (0.07%) (0.01%) 0.12% (0.07%) Residential lending1 (2bps) Asset mix +9b
Slide 34: Operating expenses
Operating expenses Cost growth driven by wage and price inflation, and increased software amortisation Contribution +6.6% +1.1% (1.5%) (0.8%) +2.3% to movement +5.4% 1,209.4 12.8 -13.1 (17.0) 20.6 8.5 26.4 (9.4) 1,183.0 73.8 +7.7% • Lower FTE in Operations • Other non-FTE cost reduction activities 1
Slide 35: Consumer
Consumer Multi-channel strategy drives growth and NII Balance sheet growth ($b)1 Divisional NIM (%) Jun-24 Jun-25 • Net interest income increased 2.7% reflecting growth in assets (+7.4% for the year), partly offset by margin contraction of 5bps • Customer deposit balances increased $4.3 billion (9.8
Slide 36: Business and Agribusiness
Business and Agribusiness Return to growth, margin now a key focus Balance sheet growth ($b)1 Divisional NIM (%) Jun-24 Jun-25 • Net interest income decreased 7.0%, largely due to margin contraction of 40bps impacted by deposit funding costs and retention-based pricing in Business lending 20.6 21.2
Slide 37: Homesafe
Homesafe Summary of performance • Restructure of Homesafe investments in December 2023: Homesafe portfolio & funding balance ($m) • Ceased funding of new contracts from 30 June 2024 Jun-25 split: 1 1,108.9 Melbourne – 57% • Portfolio valued at c.$1.1 billion will be in run-off as Sydney – 43% existi
Slide 38: Residential lending
Residential lending Flow Portfolio Residential metrics1 2H25 1H25 Jun-25 Dec-24 Jun-24 Flow / Portfolio amount $7.9b $10.1b $66.6b $65.2b $61.9b 2 Retail lending (Proprietary) 38% 30% 41% 43% 44% 3 Third Party Banking lending (Broker/white label) 46% 51% 45% 47% 45% 4 Digital Lending 16% 19% 11% 10%
Slide 39: Residential lending portfolio
Residential lending portfolio Fixed rate maturities and growth versus system Loans to Households1 BEN market share Residential lending portfolio fixed rate maturities ($b) 2.74% 2.73% 2.67% 2.65% 2.0 2.0 Dec-23 Jun-24 Dec-24 Jun-25 1.4 1.3 Loans to Households1 vs System (HoH annualised) 10.7% 0.2 1H
Slide 40: Residential lending: Portfolio and state splits
Residential lending Portfolio and state splits Residential balance by state2 Residential lending portfolio ($b)1 15% 10% 9% 66.6 65.2 61.9 26% 59.7 60.3 60.1 38% Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 2% 1. Residential portfolio balances are represented by product and include all portfolios inclu
Slide 41: Business lending
Business lending Portfolio and state splits Business portfolio ($b)1 Business balance by state3,4 9.4 9.4 9.5 9.4 9.8 9.3 14% Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 5% 7% SME segment ($b)2 13% 5.1 5.3 5.2 5.3 5.0 5.1 59% Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 2% 1. Business portfolio balances
Slide 42: Agribusiness lending
Agribusiness lending Portfolio and state splits 1 Agribusiness balance by state3 Agri exposure by industry 4% 7% Grain/Sheep/Beef 6% Sheep/Beef 32% Beef 7% Grain Sheep 18% Dairy 14% Other 11% Hort./Vit. 12% 17% 17% Agribusiness portfolio ($b)2 20% 6.6 7.1 6.7 7.3 6.0 6.3 33% Dec-22 Jun-23 Dec-23 Jun
Slide 43: Loans by Purpose v Loans by Product
Loans by Purpose v Loans by Product Residential Lending ($b) Business Lending ($b) +2.7% +7.6% 10.6 9.7 10.2 9.3 10.3 9.4 10.3 9.4 10.4 9.5 10.3 9.4 10.3 9.8 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Business by purpose Business by product 63.7 65.2 65.1 66.6 58.6 60.3 58.5 60.1 60.4 61.9 57.
Slide 44: Financial assets - credit risk exposures
Financial assets - credit risk exposures Jun-25 ($b) Dec-24 ($b) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Residential/Consumer 60.88 5.33 0.73 66.93 59.60 5.25 0.59 65.45 Accommodation and food services 0.17 0.02 0.00 0.19 0.16 0.02 0.00 0.18 Administrative and support services 0.
Slide 45: Replicating portfolio impact on NIM
Replicating portfolio impact on NIM Capital and deposit hedges Average hedged yield on capital and deposit replicating portfolio2 • Benefits from slightly increasing hedged replicating portfolio rate offset by impact of declining RBA cash rate on unhedged deposits FY23 FY24 FY25 1H25 2H25 Avg Avg Av
Slide 46: Community Bank: How the revenue share works
Community Bank How the revenue share works 50/50 split Community Interest Margin Bank FTP rate1 rate income footings between BEN and Community Banks Community Bank revenue: Community Bank Community Operating Operating 50% costs Bank profit costs Margin income share plus a Distributions to Community
Slide 47: Community Bank
Community Bank ‘Profit with purpose’ model Community Bank footings ($b)2 Aims: Community Bank branches are a significant source of deposits for the broader Group, • To secure branch banking services for participating communities increasing $2.9 billion in FY25 • To empower and build confidence and c
Slide 48: Community Bank impact
Community Bank impact Driving positive social and economic outcomes in communities across Australia 980,000+ 1,700+ 70,000+ 1,500+ 214 307 Community Bank Community Bank Community Bank Community Bank Community Bank Community Bank and Customers Staff Shareholders Directors Companies private franchise
Slide 49: Business Sustainability
Business Sustainability ESG metrics Sustainability commitments Status FY25 outcomes FY26 priorities Environment & Climate Reduce Scope 1 and Scope 2 emissions by 92% by 2030 Achieved 92.9% Australian Sustainability Reporting Reduce financed emissions by 2030: Commercial Real Estate (70%/m2), FY24: C
Slide 50: Investment spend
Investment spend – Half year ($m)2 Investment spend 3 % Opex Investment spend in foundational technology in FY25 43% 44% 49% 55% ($66m) 119.0 106.5 109.6 111.8 Top initiatives by spend for FY25: 4.6 2.7 9.3 13.9 15.8 22.4 13.9 24.0 • Bendigo Lending Platform (Foundational technology) • PeopleHub1 (R
Slide 51: Arrears
Arrears Remain benign though increasing to pre-2020 levels Residential loan arrears Business loan arrears 1.0% 5.0% 0.82% 0.8% 0.69% 4.0% 0.63% 2.79% 2.52% 2.64% 0.53% 0.52% 0.54% 2.10% 0.6% 0.49% 0.46% 3.0% 2.07% 2.06% 0.41% 2.26% 1.76% 1.86% 0.4% 2.0% 0.2% 1.0% 0.0% 0.0% Jun-21 Dec-21 Jun-22 Dec-2
Slide 52: Credit quality
Credit quality More than half of exposures in advance by >6months % of exposures by payments in advance (including offsets)2 35 Current LVR of no buffer and Composition of no buffer and <1 month ahead (% of EAD) 30 <1 month ahead (% EAD) 25 39 20 31.5 31.3 30.2 6 15 37.1% 21 32.5% 10 15.6 15.0 14.3
Slide 53: Credit Risk Weighted Assets
Credit Risk Weighted Assets Gross Credit Exposures – Portfolios1 ($m) 30-Jun-25 31-Mar-25 31-Dec-24 Claims secured by residential mortgage2 71,706.0 72,354.0 67,627.9 Other retail2,3 19,611.0 19,469.0 16,540.2 Corporate2 922.0 931.0 836.3 Banks and other ADIs2 3,707.0 3,878.0 3,822.5 Government2 8,4
Slide 54: Specific provisions and impaired assets
Specific provisions and impaired assets Specific provision balances improved through the half, slight deterioration in impaired balances Specific provisions breakdown ($m) Specific provision balance ($m) 20.0 20.0 20.2 Represented by 13.4 10.0 10.4 10.1 9.4 39.6 36.8 31.3 6.4 1.3 1.5 2.3 4.3 4.8 0.8
Slide 55: Provisioning
Provisioning Provisioning remains appropriate for the current operating environment Total provisions ($m) Collective provisions ($m) as % of gross loans 381.5 384.9 381.2 368.5 362.1 0.30 0.28 0.27 95.2 95.2 95.2 95.2 246.4 95.2 236.5 235.6 38.5 37.6 41.3 39.6 50.5 47.8 36.8 31.3 207.9 198.9 238.5 2
Slide 56: Collective provisions and scenario outcomes
Collective provisions and scenario outcomes Total collective provision movements ($m) 246.4 4.2 (14.1) 236.5 235.6 (6.5) 5.6 Jun-24 Changes resulting from Changes to overlays Dec-24 Changes resulting from Changes to overlays Jun-25 modelled outcomes modelled outcomes Scenario weightings continue to
Slide 57: Collective provisions and scenario outcomes: Model inputs
Collective provisions and scenario outcomes Model inputs Unemployment (%) Gross Domestic Product (%) 12% 8% 6% 10% 4% 8% 2% 6% 0% -2% 4% -4% 2% -6% Jun-25 Dec-25 Jun-26 Dec-26 Jun-27 Dec-27 Jun-28 Jun-25 Dec-25 Jun-26 Dec-26 Jun-27 Dec-27 Jun-28 Significant improvement Mild improvement Base scenario
Slide 58: LCR and NSFR
LCR and NSFR Funding and liquidity ratios remain well positioned Liquidity Coverage Ratio ($b)1 LCR full year (%)1 As at 30 June 2025 132.3% (5.4) 7.3 (5.9) (1.5) 1.9 137.8 132.3 2.1 High quality 13.0 liquid assets Other cashflows 5.8 Wholesale funding Customer deposits Jun-24 Qtr High quality Custo
Slide 59: Customer deposits
Customer deposits Deposit split and funding costs Customer deposits - by type Customer deposit – funding costs $72.9b $8.6b 0.3% 2.0% Term Deposits 1.9% 30.2% 65.1% <= 1.00% $26.1b > 1.00% - <= 2.00% 0.5% > 2.00% - <= 3.00% > 3.00% - <= 4.00% 0.3% 1.0% > 4.00% - <= 5.00% > 5.0% Savings 26.9% 10.1% 6
Slide 60: Capital
Capital Strong CET1 capital position provides flexibility CET1 ratio – using standardised RWA1 S&P RAC Ratio2 BEN CET1 ratio approx. 23% BEN S&P RAC ratio approx. 25% higher than major bank average higher than major bank average 14.40% 11.00% 9.29% 8.71% 9.10% 8.54% 12.40% 11.60% 11.30% 10.70% BEN M
Slide 61: Dividend
Dividend Consistent returns for shareholders Dividends (cents per share) • FY25 dividend in line with FY24 Payout ratio1 59% 60% 63% 69% • Dividend levels managed across the year 63.0 63.0 61.0 • Target payout ratio 60-80% of cash earnings 53.0 32.0 33.0 33.0 • Strong CET1 capital position provides
Slide 62: Abbreviations
Abbreviations 1H24 – First half of financial year 2024 CAGR – Compound annual growth rate MFI – Main Financial Institution 1 Cash Earnings - Statutory earnings adjusted for non-cash 1H25 – First half of financial year 2025 NII – Net Interest Income items and other adjustments 2H24 – Second half of f
Slide 63: Important Information
Important Information This document is a presentation of general background information about the Group’s activities current at the date of the presentation. It is information in a summary form and intended to be read by a professional analyst audience and no representation or warranty is made as to
Slide 64: Shareholder Centre
Shareholder Centre BEN Financial Annual Corporate Investor Sustainability Results & Financial Report Governance Calendar Report Presentations Statement www.bendigoadelaide.com.au www.bendigoadelaide.com.au www.bendigoadelaide.com.au www.bendigoadelaide.com.au www.bendigoadelaide.com.au /results /afr
Bendigo & Adelaide Bank — FY2025 Earnings Presentation on 6ix