Slide 1: FY25 Financial Results Investor Presentation Correction
BNK Banking Corporation Limited Level 14, 191 St Georges Terrace Perth WA 6000 ASX Release, 28 August 2025 FY25 FINANCIAL RESULTS INVESTOR PRESENTATION CORRECTION BNK Banking Corporation Limited (ASX: BBC) (“BNK” or the “Company”) advises that minor errors were identified in the Investor Presentatio
Slide 2: FY25 Financial Results Investor Presentation
FY25 Financial Results 28th August 2025 Investor Presentation
Slide 3: Agenda
Agenda FY25 Results FY25 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 15 Page 29 2
Slide 4: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingen
Slide 5: FY25 Results Overview
FY25 Results Overview Allan Savins Chief Executive Officer
Slide 6: BNK made meaningful progress in FY25, delivering a clear turnaround
BNK made meaningful progress in FY25, delivering a clear turnaround and building momentum across the business. Our focus on higher-margin, capital-efficient assets, combined with disciplined cost and balance sheet management, is driving sustainable performance. During the year, we also executed some
Slide 7: Financial results showing improved underlying NPAT and financial resilience
Financial results showing improved underlying NPAT and financial resilience $21.9m $26.1m $24.2m $1.3m Statutory NPAT up $8.0m on FY24 Net Interest Income up Net income up 50% on Operating Expenses up 13% on FY24 FY24 12% on FY24 $3.8m Underlying NPAT* up $4.7m on FY24 1.52% 1.70% 29.0% $2.0m 2H25 U
Slide 8: Strategic Highlights
Strategic Strategic shift is delivering results. Highlights Strong Underlying and Statutory performance. Net Interest Income growth. Delivering on the Strategy, Margin expansion. Driving Value Diversified Revenue streams, underpinned by the Robusta securitisation of Goldman Sachs warehouse
Slide 9: BNK Loan Book, Deposits & Net Interest Income
BNK Loan Book, Deposits & Net Interest Income Strategic reshaping of the portfolio supports net interest income growth Loan Book ($m) Deposit Book ($m) Net Interest Income ($m) 1252 1271 1352 1373 21.9 18.8 19.3 1008 965 986 903 12.9 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 FY25 l
Slide 10: Risk-managed growth and diversification in the BNK funded lending portfolio
Risk-managed growth On balance sheet loans and diversification in the FY25 FY24 BNK funded lending portfolio Interest Interest Only Only 16.5% 16.3% Stable risk profile despite increase in higher margin loans Principal & Principal & Interest Interest 83.5% 83.7% Composition remains stable, reflectin
Slide 11: Risk-managed growth and diversification: portfolio mix by loan category
Risk-managed growth Portfolio mix by loan category and diversification in the FY25 FY24 BNK funded lending portfolio Specialist Specialist Residential Commercial Residential 12.8% 5.5% 13.1% Stable risk profile despite increase Commercial in higher margin loans 14.8% Prime Residential Prime Resident
Slide 12: Risk-managed growth and diversification: portfolio mix by LVR
Risk-managed growth Portfolio mix by LVR and diversification in the FY25 FY24 BNK funded lending >80%- 90% LVR, >80%- 90% LVR, Above 90% LVR, portfolio 5.1% 0.4% 6.0% Above 90% LVR, 0.5% Stable risk profile despite increase Up to 60% LVR, Up to 60% in higher margin loans 39.1% LVR, 34.9% >60%- 80% L
Slide 13: Portfolio Resilience and Credit Strength
Portfolio Resilience and Portfolio mix by repayment Credit Strength FY24 FY25 Arrears 2.1% Arrears 1.6% Customers showing resilience, portfolio strength On time Ahead On time Ahead 53.9% 44.0% 54.0% 44.4% Most customers remain on track or ahead with repayments, supported by lower interest rates. 12
Slide 14: Diversification in the BNK funded lending portfolio
Diversification in the Residential portfolio by loan type BNK funded lending portfolio FY25 FY24 Stable risk profile despite increase in higher margin loans Investor Investor 37.4% 37.0% Owner Owner Occupied Occupied 62.6% 63.0% Slight increase in proportion of Investor loans but largely stable. 13
Slide 15: Strong Cornerstone Portfolio
Strong Cornerstone BNK has focused on changing the lending book composition in FY25 with greater priority on higher margin lending. Portfolio Residential Loan Commercial Loan High Quality Portfolio Portfolio Customers • Average Residential loan size $378k, • Average Commercial loan size $540k. • 1.1
Slide 16: FY25 Financial Results
FY25 Financial Results Steve Kinsella Chief Financial Officer
Slide 17: Improved performance in a competitive landscape
Improved performance in a competitive landscape Economic & Business Environment BNK Portfolio • Interest rate easing cycle underway though global • Reduction in lower margin Prime Residential book through uncertainty leading to cautious approach from the RBA. attrition and sale helping significant N
Slide 18: FY25 Financial Results
Statutory Variance to FY24 Underlying Variance to FY24 ($’000) %* ($’000) %* FY25 Net Interest Income 21,882 ↑ 13% 21,882 ↑ 13% Financial Other Income 4,228 ↑ 328% 6,670 ↑ 515% Results Expenses – Underlying (23,131) ↑ 8% (23,131) ↑ 8% Improvement in Statutory Expenses – Non –recurring¹ (1,073) ↑ 439
Slide 19: Performance: Underlying - FY25
Performance: Underlying - FY25 Improvement in Net Interest Income, Other Income and Credit Provisions, partly offset by targeted expense growth FY25 v FY24 ($m) 5.5 0.4 3.8 2.6 0.1 (0.9) (0.6) (1.1) (2.0) Underlying Upfront Net Interest Net Other Provision for Employee Expenses Other Tax* Underlying
Slide 20: FY25 Key Metrics
FY25 Key FY25 FY24 Variance % Metrics Total Assets $1,234m $1,725m ↓ 28.5% Deposits $1,008m $1,271m ↓ 20.6% Net Interest Margin 152bps 106bps ↑ 46bps Cost-Income Ratio (underlying) 93% 105% ↓ 12% Capital Adequacy Ratio 29.0% 23.4% ↑ 563bps Minimum Liquid Holdings Ratio 26.5% 22.4% ↑ 408bps (Spot) Ne
Slide 21: 2H25 Financial Results
2H25 2H25 Underlying ($’000) 1H25 Underlying ($’000) Variance % Financial Net Interest Income 10,832 11,050 ↓ 2% Results Other Income 3,711 2,960 ↑ 25% Expenses - Underlying (11,752) (11,397) ↑ 3% Improvement in underlying NPAT Operating Performance 2,791 2,613 ↑ 7% from 1H25 Credit Loss Provision (
Slide 22: Performance: Underlying – 2H25
Performance: Underlying – 2H25 Income up on 1H25, expenses lower 2H25 v 1H25 ($m) 0.2 0.1 2.0 1.8 0.9 (0.2) (0.0) (0.2) (0.1) (0.6) 1H25 Upfront Trail Net Interest Net Other Provision for Professional Expenses Tax* 2H25 Underlying Commission Commission Income Income Credit Losses Services Other Unde
Slide 23: Net Interest Margin
Net Interest Margin FY25 v FY24 NIM 0.57% Active management driving improvement in NIM 0.29% 0.13% 0.00% 1.52% (0.53%) 1.06% • Improvement in NIM from targeted reduction in lower margin assets, initial growth in higher margin assets and management of cost of funds. • Improvement in 2H25 NIM to 1.70%
Slide 24: Funding Mix
Composition of Book (%) Funding Mix 6% 19% Continued competition for deposits, despite 28% lower absolute rates, with higher yield online offerings available to customers. 40% 7% • Term Deposits rates remain competitive. 5% • Savings account rates also remain 59% competitive with additional online o
Slide 25: Operating Expenses
Operating Expenses Continued focus on cost discipline with targeted investment FY25 v FY24 Operating Expenses ($m)* 30.0 25.0 24 .2 1.6 0.4 0.1 21 .6 0.6 3.8 20.0 3.7 1.6 1.2 4.2 15.0 2.6 10.0 14.1 14.7 5.0 0.0 FY24 OPEX Employee Expenses IT Expenses Prof Services Expenses Other Expenses FY25 OPEX E
Slide 26: Credit Quality & Portfolio Profile
Credit Quality & Portfolio Profile Customers showing resilience, portfolio strength Customer Repayment Profile Portfolio Loan to Value Ratios (LVR) % breakdown 60% 57% 54% 54% 70% 50% 58.6% 60% 55.4% 40% 50% 39.1% 30% 40% 34.9% 30% 20% 18% 16% 12% 13% 12% 20% 11% 11% 9% 10% 10% 10% 5% 10% 4% 5.1% 6.
Slide 27: Credit Quality & Arrears
Credit Quality & Arrears Arrears impacted by higher interest rates but broadly stable Total Loan Book Arrears breakdown Residential book Arrears ageing (% of Residential loan book) Date (31-60 days) (61-89 days) (90+ days) Total (31 days+) 5.00% Dec-23 0.52% 0.55% 0.57% 1.64% 4.50% Mar-24 0.50% 0.29
Slide 28: Credit Quality & Loss Protection
Credit Quality & Loss Protection Adequate credit provisioning despite household economic pressures Credit Loss Charge Credit Loss Provision 4,500 330 22 bps 33 bps 2 bps 4,000 280 3,500 3,269 230 3,157 152 3,000 264 180 300 1,030 130 2,500 ($k) 1,090 ($k) 80 2,000 612 30 1,500 103 656 -20 FY24 ($k)
Slide 29: Well Capitalised
Well Capitalised Strong capital position remains well above regulatory minimums FY25 v FY24 Capital Adequacy Ratio 30.0% 1.61% 28.99% 28.0% 0.23% 0.54% 3.22% 0.29% 26.0% (0.27%) 5.89% 23.36% 24.0% 22.0% 5.18% 20.0% 18.0% 23.10% 16.0% 14.0% 18.18% 12.0% 10.0% FY24 RWA Credit Risk RWA Operational Earn
Slide 30: Strategy Update and Outlook
Strategy Update and Outlook Allan Savins Chief Executive Officer
Slide 31: Strategic Outcomes FY25
Strategic Outcomes FY25 Delivering on Strategy, Building for the Future Growth Margin Profitability Target: Focus on achieving steady, Target: 30% concentration of higher- Target: Increase BNK’s Net Interest sustainable growth, with a ROE >10% margin assets to attain optimal capital Margin to >2% ov
Slide 32: Strategic Focus Medium Term
Strategic Focus Medium Term Deepening Focus, Driving Value Growth Margin Profitability Increase BNK’s Net Interest Margin Achieve steady, sustainable growth, Scale High Value opportunities with a ROE >10% and underlying to >2% Cost to Income ratio of <60% • Momentum beyond original 30% high • Contin
Slide 33: Summary and Outlook
Summary Deliver sustainable underlying profitability. and Outlook Accelerate growth in high margin and high return segments. Scale senior secured warehouse funding. Reintroduce moderated prime volume. Executing with Discipline, Advancing with Purpose Maintain cost discipline in a challengi
Slide 34: Q&A Session
DB BNK | PRBetter choice Q&A Session
Slide 35: Thank you
FY25 Financial Results 28th August 2025 Thank you The Bank for Enterprising Australians