Bnk Banking Corporation Limited · ASX:BBC
Bnk Banking — H1 2026 Earnings Presentation
35 slides from Bnk Banking's earnings presentation, Feb 26, 2026
Slide 1: 1H26 Financial Results Investor Presentation
1H26 Financial Results 26th February 2026 Investor Presentation
Slide 2: Agenda
Agenda 1H26 Results 1H26 Financial Strategy Update Questions and Overview Results and Outlook Answers Allan Savins Steve Kinsella Allan Savins Chief Executive Officer Chief Financial Officer Chief Executive Officer Page 4 Page 17 Page 30 2
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by BNK Banking Corporation Limited (ACN 087 651 849) (“BNK”). Forward-looking statements This presentation contains certain forward-looking statements with respect to the financial condition, results of operations, business plans and objectives of manag
Slide 4: 1H26 Results Overview
1H26 Results Overview Allan Savins Chief Executive Officer
Slide 5: Rebalancing the portfolio toward higher-return, capital-efficient assets
In 1H26 we continued to rebalance the portfolio toward higher- return, capital-efficient assets, supporting an improvement in asset mix and further strengthening NIM. We also advanced key strategic initiatives, including the commencement of senior secured investments and measured growth in commercia
Slide 6: 1H26 Highlights
1H26 Highlights $11.6m $13.2m $12.2m $0.42m Net Interest Income up Net Income up 4% on Operating Expenses 5% on 1H25 1H25 flat on 1H25 Statutory NPAT up 31% on 1H25 $0.44m 1.88% >$160m 27.0% Underlying NPAT down 76% on NIM up 49bps on 1H25 Growth in higher-return Capital Adequacy Ratio 1H25 assets o
Slide 7: Strategic Highlights
Strategic ✓ Strategic shift continuing to reshape the portfolio Highlights ✓ Positive Underlying and Statutory results Executing the strategy, ✓ Net Interest Income growth strengthening the earnings drivers ✓ Net Interest Margin expansion ✓ Higher-return assets represent 43% of the total portfolio ✓
Slide 8: Medium Term Value Drivers
Medium Term Value Drivers Translating early strategic progress into stronger, sustainable returns Scaling higher-return Sustaining margin Strengthening Portfolio segments momentum Return Quality • Achieved the initial targeted 30% • Positive NIM trajectory toward the • Ongoing optimisation of expans
Slide 9: Lending, Deposits, NIM & Net Interest Income
Lending, Deposits, NIM & Net Interest Income Strategic reshaping of the portfolio supports net interest income growth and NIM uplift Lending ($m) Deposits ($m) NIM (%) & NII ($m) 9
Slide 10: Risk-managed portfolio growth and diversification
Risk-managed portfolio growth and diversification Disciplined portfolio reshaping through targeted diversification Portfolio mix by lending category Dec-25 Jun-25 Dec-24 Total: $983m Total: $903m Total: $1,181m 10
Slide 11: Repayment structure enhancing portfolio resilience
Repayment structure enhancing portfolio resilience Stable risk profile despite increase in higher-return loans Residential loans Commercial loans Dec-25 Jun-25 Dec-25 Jun-25 11
Slide 12: Residential Portfolio - Owner Occupied and Investor
Residential Portfolio - Owner Occupied and Investor Stable risk profile with minimal change in portfolio mix Residential portfolio by loan type Dec-25 Jun-25 Dec-24 12
Slide 13: Portfolio Resilience and Credit Strength
Portfolio Resilience and Credit Strength Most customers remain on track or ahead in their repayments Residential portfolio mix by repayment Commercial portfolio mix by repayment Dec-25 Jun-25 Dec-25 Jun-25 13
Slide 14: Residential Loan Book Composition
Residential Loan Book Composition Stable risk profile in the residential loan book Residential loan book LVR at settlement Residential loan book by state 34% 28% 19% 13% 6% 0-50% 50%-60% 60%-70% 70%-80% >80% Weighted average LVR of 62% at 31 December 2025 14
Slide 15: Commercial Loan Book Composition
Commercial Loan Book Composition Stable risk profile with continued growth in the commercial loan book Commercial loan book LVR at settlement Commercial loan book by state 44% 25% 17% 14% 0% 0-50% 50%-60% 60%-70% 70%-80% >80% Weighted average LVR of 64% at 31 December 2025 15
Slide 16: Strong Cornerstone Portfolio
Strong Cornerstone Portfolio Portfolio fundamentals remain sound across residential and commercial lending. Residential Loan Portfolio Commercial Loan Portfolio Portfolio size: $732m Portfolio size: $191m • Focus on higher return residential loan growth • 40% growth in 1H26 • Average loan size of $3
Slide 17: 1H26 Financial Results
1H26 Financial Results Steve Kinsella Chief Financial Officer
Slide 18: Resilient performance in a competitive landscape
Resilient performance in a competitive landscape Economic & Business Environment BNK Portfolio • Rapid shift in rate environment from easing to tightening • Increased commercial loan book, senior secured bias with on-going inflationary fears. investments, attrition in prime residential portfolio and
Slide 19: 1H26 Financial Results
1H26 Financial Results Variance to Variance to ($’000) Statutory Underlying 1H25 1H25 Net Interest Income 11,577 ↑ 5% 11,577 ↑ 5% Other Income 1,660 ↓ 3% 1,687 ↓ 43% Operating Expenses (12,185) − 0% (12,185) ↑ 7% Operating Performance 1,052 ↑ 104% 1,079 ↓ 59% Credit Loss Provision (454) ↑ 634% (454)
Slide 20: Underlying NPAT: 1H25 to 1H26
Underlying NPAT: 1H25 to 1H26 Underlying NPAT of $0.4m in 1H26 $0.4m $0.5m Reversal ($1.6m) (positive) $0.1m in 1H25 $1.8m ($0.5m) Robusta transaction fee income in 1H25 ($0.9m) $0.4m $0.7m 1H25 Net Interest Upfront Other Income Credit Loss Employee Tax 1H26 Underlying NPAT Income Commission Provisi
Slide 21: Key Metrics
Key Metrics 1H26 2H25 Variance 1H25 Variance Total Assets $1,237m $1,234m ↑ 0% $1,552m ↓ 20% Deposits $1,029m $1,008m ↑ 2% $1,097m ↓ 6% Net Interest Margin 1.88% 1.70% ↑ 18bps 1.39% ↑ 49bps Cost to Income Ratio 92% 80% ↑ 12% 81% ↑ 11% Capital Adequacy Ratio 27.04% 28.71% ↓ 167bps 26.83% ↑ 21bps Liqu
Slide 22: Net Interest Margin: Quarterly
Net Interest Margin: Quarterly Active liability management and focus on targeted higher-return lending driving continued improvement in NIM 1.93% 1.83% 1.76% 1.64% 1.40% 1.37% 1.37% 1.03% 0.94% 0.90% 1Q24 2Q24 3Q24 4Q25 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 22
Slide 23: Net Interest Margin: 1H25 to 1H26
Net Interest Margin: 1H25 to 1H26 Targeted higher-return lending and active liability management driving continued improvement in NIM (0.04%) 0.12% 0.09% 0.31% 0.49% improvement 1.88% 1.39% 1H25 NIM Lending mix Senior secured investments Deposit & funding Other 1H26 NIM 23
Slide 24: Funding Mix
Funding Mix • The funding composition remained well Composition of Book (%) balanced through 1H26, with a continued emphasis on stable, lower-cost funding sources. • Term deposits increased as a proportion of total funding from Jun-25 reflecting customer preference for higher rates on offer in a com
Slide 25: Operating Expenses
Operating Expenses Total Operating Expenses flat 1H25 to 1H26 $12.2m 0.9 0.0 $12.2m (0.2 ) (0.6 ) 1.2 (0.2 ) 0.6 0.7 0.9 12% increase driven by: 0.8 0.8 Reduction driven by • 3.5% CPI and Robusta transaction fees 1.8 Superannuation 2.0 in 1H25 increases • 8.5% investment in capability and capacity 8
Slide 26: Credit Quality & Arrears
Credit Quality & Arrears Rise in 1H26 arrears driven by small number of loans Loan book 90+ day arrears Residential arrears 2.5% Date (31-60 days) (61-90 days) (90+ days) Total (31+ days) 2.0% 1.5% Dec-24 0.33% 0.07% 0.65% 1.04% Mar-25 0.67% 0.46% 0.85% 1.98% 1.0% Jun-25 0.68% 0.41% 1.20% 2.30% 0.5%
Slide 27: Credit Quality & Portfolio Profile
Credit Quality & Portfolio Profile Customers showing resilience, portfolio strength Customer Repayment Profile Portfolio LVR 59% 56% 56% 57% 54% 54% 37% 37% 36% 15% 13% 13% 12% 11% 12% 12% 9% 9% 10% 9% 5% 6% 5% 5% 1% 2% 2% 1% 0% 0% Arrears On time <1 month 1 to 3 months 3 months to 1 >1 year 0% to 6
Slide 28: Credit Quality & Loss Protection
Credit Quality & Loss Protection Credit Loss Provision • The increase in the expected credit loss provision is aligned to the increase in commercial lending and uplift in the delinquency rates. • The loan book comprises 79% residential mortgages with an average weighted loan to valuation ratio of 62
Slide 29: Well Capitalised
Well Capitalised Strong capital position remains well above regulatory minimums Capital Adequacy Ratio (CAR) 28.71% 0.09% 0.11% 0.35% 0.06% 27.04% (2.28%) CAR Jun-25 Business Earnings NPV Deferred Tax Other CAR Dec-25 Growth Assets 29
Slide 30: Strategy Update and Outlook
Strategy Update and Outlook Allan Savins Chief Executive Officer
Slide 31: Strategic Outcomes 1H26
Strategic Outcomes 1H26 Focused growth, stronger margins, positioning for earnings improvement Growth Margin Profitability Target: Maintain concentration of Target: Focus on achieving steady, Target: Improve BNK’s Net Interest sustainable growth, with a ROE >10% higher-return assets to attain optima
Slide 32: Strategic Focus Medium Term
Strategic Focus Medium Term Deepening our strategic focus to drive broader, sustainable value Growth Margin Profitability Achieve steady, sustainable growth, Scale higher-return opportunities Increase BNK’s Net Interest Margin to >2% with a ROE >10% and underlying Cost to Income ratio of <60% • Mome
Slide 33: Summary and Outlook
Summary ✓ Sustain NIM through mix and funding discipline and Outlook ✓ Scale higher-return assets and senior secured investments within defined risk settings ✓ Selective prime loans at appropriate returns Ongoing delivery against ✓ Grow non-interest income our strategic plan ✓ Maintain cost discipli
Slide 34: Q&A Session
BNK | fi@Better Choice Q&A Session
Slide 35: Thank you
1H26 Financial Results 26th February 2026 Thank you The Bank for Enterprising Australians