Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — H1 2026 Earnings Presentation
63 slides from Bendigo & Adelaide Bank's earnings presentation, Feb 16, 2026
Slide 1: Results Presentation
Results Presentation For the half year ended 31 December 2025 Released 16 February 2026 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 Overview 1H26 Results Q&A Summary Richard Fennell, Andrew Morgan, Richard Fennell & Richard Fennell, Chief Executive Officer Chief Financial Officer Andrew Morgan Chief Executive Officer and Managing Director and Managing Director Page 4 Page 13 Page 25 Page 26 3
Slide 4: Overview: Key messages
Overview Key messages • Customer numbers trending towards 3 million, Bendigo Bank NPS +24.9 above industry1 • Lower cost deposits grew 3.6% to now make up 53.8% of total customer deposits (up from 52.4%), supported by digital deposit sales2 of 41.4%, up 7.4% for the half • Operating expenses reduced
Slide 5: 1H26 Strategic execution
1H26 Strategic execution Digital Onboarding Bendigo Lending Platform Building scale through innovation To feed into the prosperity of OUR PURPOSE our customers and communities We are deepening our focus One Core System OUR CUSTOMERS on our target customer segments OUR STRATEGIC 4 Set the 5 Reinvent
Slide 6: Financial and operating performance
Financial and operating performance Deposit mix and repricing drive income, while operating expenses were higher 1H26 ($m) 1H26 v 2H25 1H26 v 1H25 Key points – half year • Income above $1 billion, Total income 1,009.9 3.7% 3.9% benefitting from higher margin and strong growth in Operating expenses 6
Slide 7: 1H26 Divisional results
1H26 Divisional results Lower cost deposits and digital loans continue to grow Consumer 1H26 Cash Earnings1 ($m) Business & Agribusiness • 5.9% increase in cash earnings • 1.1% decrease in cash earnings • 4.9% increase in NII • 1.5% increase in NII • 6.6% increase in segment • 3.3% increase in segme
Slide 8: 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 simply and 1. Optimise efficiently deposit franchise Strengthen digital deposit capability 8
Slide 9: Optimise Deposit Franchise
Optimise Deposit Lower Cost Deposits ($b)1 Franchise 7.0% CAGR 39.6 +3.6% 37.0 38.2 34.6 35.3 Strengthen digital deposit capability 24.2 25.3 27.0 28.3 29.6 • Lower cost deposits driven by 17% YoY growth in EasySaver 10.4 10.0 10.0 10.0 10.0 • Programs to support lower cost deposits Dec-23 Jun-24 De
Slide 10: Productivity
Operating Expenses ($m) -6.4% +4.2% 328.8 (8.0) 636.5 29.7 307.7 28.2 33.5 Productivity 611.0 299.1 279.5 Operate simply and efficiently • Operating expenses trending lower QoQ • Investment spend tracking in line with FY26 1Q26 2Q26 2H25 BAU Investment 1H26 Spend guidance BAU Investment Spend • Gain
Slide 11: Sustainable growth
Average mortgage – NIM1/CRWA (new business) Sustainable growth 41% Disciplined approach to capital allocation • Residential Lending contraction easing. Momentum in application flow across 2Q26 • Focusing on growth in channels that meet or exceed our Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 cost of capital
Slide 12: AML Program
Action already underway AML Program • Accountable Executive, Chief Risk Officer Futureproof our risk management • Newly appointed Chief Compliance and Financial Crime Officer commenced (27 January 2026) capabilities • Program Manager being appointed and funding allocated. Work has commenced on prior
Slide 13: 1H26 Results
1H26 Results Andrew Morgan – Chief Financial Officer 13
Slide 14: Overview of key 1H26 financials
Overview of key 1H26 financials Disciplined growth supporting margin and revenue Balance sheet 1H26 HoH P&L 1H26 HoH Total lending $84.2b 1.9% Net interest income $871.1m 3.2% Residential lending $65.1b 2.3% Operating Expenses $636.5m (4.2%) Operating expenses Customer deposits $73.7b 1.1%
Slide 15: Cash earnings vs Statutory earnings
Cash earnings vs Statutory earnings Restructure costs continue, Homesafe improves Key items • Most restructure costs over the 1H26 ($m) 2H25 ($m) 1H25 ($m) last three halves reflect costs associated with migration of Rural Cash earnings (after tax) 256.4 249.4 265.2 Bank and Adelaide Bank customers
Slide 16: Total income
Total income Income benefited from higher margins and stronger other income Income – 1H26 v 2H25 1 AIEA : -0.6% NIM: +4bps Days count: 3 additional days 7.1 1.6 1,009.9 27.0 +3.7% 974.2 2H25 Net interest income Other income Homesafe2 1H26 Income callouts: Key considerations: • NII driven by improved
Slide 17: Net interest margin
Net interest margin Result reflects repricing activity in term deposits and improved asset and liability mix NIM – 1H26 v 2H25 0.00% 1.92% Term deposits +3bps 0.04% 1.88% 0.00% (0.03%) 0.03% Asset mix +2bps Deposit mix +2bps Residential lending (1bps) B&A lending (2bps) 2H25 Lending pricing Deposit
Slide 18: Residential lending
Residential lending New business by LVR (%) Disciplined growth in 1H26 driving improved returns 9.6% 9.2% 11.9% 13.0% • Total portfolio flat year on year and down 2.3% on prior half 56.0% 50.4% 46.1% 47.5% • New business LVR relatively stable for three consecutive halves, with ~40% of new originatio
Slide 19: Strength of deposit franchise
Strength of deposit franchise Digital deposit growth accelerates APRA household deposit/loan ratio1 • Growth mostly driven by lower cost deposit growth of 3.6% for the half; deposit mix improved • Proprietary and Community Bank branch networks remain a critical and stable source of deposit funding •
Slide 20: Operating expenses
Operating expenses Cost growth driven by additional workdays, inflation and tech costs, while momentum in productivity continues to build Contribution +3.7% +2.4% +1.0% (1.6%) (1.3%) to movement +5.5% (9.6) 644.5 14.4 5.8 (8.0) 636.5 -13.1 • Lower FTE 20.6 • Reduction in external services 8.5 22.9 •
Slide 21: Investment spend
Investment spend (excl. non-cash items) – Half year ($m)4 Investment spend 5 % Opex Investment spend focused on risk and compliance in 1H26 44% 49% 55% 65% ($58m) Top initiatives by spend for 1H26: 119.0 109.6 111.8 2.7 9.3 13.9 • Data centre consolidation (Asset lifecycle management) 22.4 13.9 24.0
Slide 22: Credit Quality
Credit Quality Credit metrics remain sound Gross impaired loans ($m) Credit expense ($m)1 % gross loans 5.5 0.15 0.15 0.15 (1.1) (3.1) (7.9) (9.9) (4.2) 127.4 129.5 125.6 (0.6) (2.4) (10.5) 1H25 2H25 1H26 Dec-24 Jun-25 Dec-25 Collective Specific Gross Impaired Loans BEN provision coverage2 over time
Slide 23: Funding and liquidity
Funding and liquidity Stable and diversified funding sources Funding profile ($b) 22.1 22.3 19.9 21.3 • Lending activities continue to be funded 26.2 26.1 25.0 through stable sources 25.4 78.7% Customer • Customer deposits as a percentage of deposits 46.7 48.7 total funding continues to increase 42.
Slide 24: Capital and dividends
Capital and dividends Capital position remains strong CET1 movement - 6 months (%) +37bps 0.48 (0.48) 0.16 (0.18) 0.06 0.14 0.01 • Resi Mortgages (+17bps) • Operational Risk RWA (-3bps) 11.37 • Other (+2bps) 11.19 11.00 1 2 Jun-25 Earnings Dividends Capitalised Deferred Other RWA Dec-25 APRA Dec-25
Slide 25: Q&A
Q&A Richard Fennell – Chief Executive Officer and Managing Director Andrew Morgan – Chief Financial Officer 25
Slide 26: Summary
Summary Richard Fennell – Chief Executive Officer and Managing Director 26
Slide 27: Our Financial Targets
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 28: Investor Summary pack
Investor Summary pack B. Bendigo Bank
Slide 29: Who we are
Who we are Overview • 167 years of history, amalgamation of more than 80 different organisations 2.91 • 2.09% market share +6,800 million employees • 416 total branches (305 Community Bank and private franchise, 111 company owned)2 customers • Multi-channelled: • Residential lending – Retail, Digita
Slide 30: 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 - 1.25 million customers in six years institutions • Up - efficient change management 1 • NPS +24.9 above industry with ~3 updates per day • Up NPS of
Slide 31: Consumer
Consumer Lower cost deposit growth increases margin and NII Balance sheet growth ($b)1 Divisional NIM (%) Jun-25 Dec-25 • Net interest income increased 4.9% reflecting the increase in margin (+8bp), driven by growth in lower cost deposits • Customer deposit balances increased $1.4 billion (2.9% 65.9
Slide 32: Business and Agribusiness
Business and Agribusiness Seasonality leads to largely flat growth for the half Balance sheet growth ($b)1 Divisional NIM (%) Jun-25 Dec-25 • Net interest income increased 1.5%, largely due to the increase in average interest earning assets (+2.8%) and an additional three days in the period 21.5 21.
Slide 33: Up
Up Up profitable today Customers Deposits Lending • 1.25 million Upsiders1 • $3.5b in deposits • $2.1b in home loans • 5% Customer growth (HoH) • 24% growth in deposits (HoH) • 27% growth in home loans (HoH) • +42.5 NPS2 • Grow & Flow interest rate structure • 64.8% average LVR • <$50 Cost of acquis
Slide 34: BAU operating expenses
BAU operating expenses Targeting to limit business as usual expenses1 to no higher than inflation through the cycle BAU Operating Expenses1 - HoH ($m) +4.2% 636.5 9.0 611.0 -13.1 20.6 8.5 57.9 +5.1% (65.9) 7.0 569.6 14.4 (8.9) 2.2 542.2 12.7 (2.9) 2H25 Inv. Spend Remediation 2H25 BAU Staff Occupancy
Slide 35: Homesafe
Homesafe Summary of performance Homesafe portfolio & funding balance ($m) • Increase in income for the half reflects a slightly higher Dec-25 split: 1 1,128.4 volume of completed contracts Melbourne – 57% Sydney – 43% • Proceeds on contracts completed during 1H26 exceeded carrying value by $2.1 mill
Slide 36: Residential lending
Residential lending Flow Portfolio Residential metrics1 1H26 2H25 Dec-25 Jun-25 Dec-24 Flow / Portfolio amount $6.8b $7.9b $65.1b $66.6b $65.2b 2 Retail lending (Proprietary) 47% 38% 45% 41% 43% 3 Third Party Banking lending (Broker/white label) 36% 46% 43% 45% 47% 4 Digital Lending 17% 16% 12% 11%
Slide 37: Digital Channels
Digital Channels Digital settlements stable across 1H26 % of residential lending settlements from digital1 Digital deposits2 ($m) Bendigo Bank Up $3,501 19.3% 19.1% Originated through multiple channels Direct: 16.8% Digital Deposit Growth HoH YoY 16.3% Bendigo Bank 13% 35% $2,763 16.2% $2,813 Up 24%
Slide 38: Residential lending portfolio
Residential lending portfolio Fixed rate maturities and growth versus system Loans to Households1 BEN market share Residential lending portfolio fixed rate maturities ($b) 2.74% 2.73% 2.67% 2.58% 2.5 Jun-24 Dec-24 Jun-25 Dec-25 1.7 1.3 Loans to Households1 vs System 0.9 (HoH annualised) 10.7% 6.8% 5
Slide 39: Residential lending
Residential lending Portfolio and state splits Residential balance by state2 Residential lending portfolio ($b)1 15% 10% 9% 66.6 65.2 65.1 61.9 25% 59.7 60.3 60.1 39% Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 2% 1. Residential portfolio balances are represented by product and include all port
Slide 40: Business lending
Business lending Portfolio and state splits Business portfolio ($b)1 Business balance by state3,4 9.7 10.0 9.3 9.4 9.4 9.5 9.4 15% Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 6% 7% SME segment ($b)2 14% 5.1 5.3 5.2 5.3 5.0 5.1 5.0 56% Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 2% 1. Busin
Slide 41: Agribusiness lending
Agribusiness lending Portfolio and state splits Agri exposure by industry1,2 Agribusiness balance by state4 Mixed Cropping 5% 7% Mixed Livestock 6% Beef 32% 6% Grain Sheep 17% Dairy 14% Other 11% 13% Hort./Vit. 16% 16% Agribusiness portfolio ($b)3 22% 6.6 7.1 6.7 7.3 6.8 6.0 6.3 33% Dec-22 Jun-23 De
Slide 42: Financial assets - credit risk exposures
Financial assets - credit risk exposures Dec-25 ($b) Jun-25 ($b) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Residential/Consumer 59.24 5.39 0.77 65.40 60.88 5.33 0.73 66.93 Accommodation and food services 0.19 0.02 0.01 0.22 0.17 0.02 0.00 0.19 Administrative and support services 0.
Slide 43: Replicating portfolio impact on NIM
Replicating portfolio impact on NIM Capital and deposit hedges Average hedged yield on capital and deposit replicating portfolio2 • Broadly flat NIM impact in 1H26, with potential for a small increase over the medium term from impact of slightly higher interest rates 1H24 2H24 1H25 2H25 1H26 on capi
Slide 44: 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 45: 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 ~$800 million in 1H26 • To empower and build confidence and
Slide 46: 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 $10 million in • $432 million returned to
Slide 47: Community Bank impact
Community Bank impact Driving positive social and economic outcomes in communities across Australia 1 922,000+ 1,600+ 69,400+ 1,500+ 212 305 Community Bank Community Bank Community Bank Community Bank Community Bank Community Bank and Customers Staff Shareholders Directors Companies private franchis
Slide 48: Business Sustainability
Business Sustainability ESG metrics Sustainability commitments Status 1H26 outcomes 2H26 priorities Environment & Climate Reduce Scope 1 and Scope 2 emissions by 92% by 2030 Achieved 92.9%1 Australian Sustainability Reporting Reduce financed emissions by 2030: Commercial Real Estate (70%/m2), FY24:
Slide 49: Arrears
Arrears Residential arrears stabilised, Business arrears trend down Residential loan arrears Business loan arrears 1.0% 5.0% 0.82% 0.85% 0.8% 0.69% 4.0% 0.63% 2.52% 2.64% 0.53% 0.52% 0.54% 2.79% 2.10% 0.6% 0.49% 0.46% 3.0% 0.41% 2.07% 2.06% 2.26% 1.76% 1.86% 0.4% 2.0% 1.47% 0.2% 1.0% 0.0% 0.0% Jun-2
Slide 50: Credit quality
Credit quality More than half of exposures in advance by >6months % of exposures by payments in advance (including offsets)2 35 Current LVR of no buffer and Composition of no buffer and <1 month ahead (% of EAD) 30 <1 month ahead (% EAD) 25 39 20 33.8 31.5 31.3 6 15 38.8% 19 31.4% 10 15.0 14.2 13.7
Slide 51: Specific provisions and impaired assets
Specific provisions and impaired assets Increase in specific provision coverage through the half Specific provisions breakdown ($m) Specific provision balance ($m) 20.0 20.2 12.7 13.4 13.5 Represented by 10.0 10.1 9.4 36.8 33.8 31.3 2.3 1.8 4.8 0.8 1.4 1.3 1.5 4.3 4.5 - Dec-24 Jun-25 Dec-25 Dec-24 J
Slide 52: Provisioning
Provisioning Provisioning remains appropriate for the current operating environment Total provisions ($m) Collective provisions ($m)1 as % of gross loans 384.9 381.2 368.5 362.1 356.7 95.2 0.28 0.27 0.27 95.2 95.2 95.2 95.2 236.5 235.6 227.7 41.3 39.6 37.6 36.8 50.5 31.3 47.0 33.8 248.4 246.4 236.5
Slide 53: Collective provisions and scenario outcomes
Collective provisions and scenario outcomes Total collective provision movements ($m)1 236.5 235.6 (6.5) 5.6 (11.1) 227.7 3.2 Dec-24 Changes resulting from Changes to overlays Jun-25 Changes resulting from Changes to overlays Dec-25 modelled outcomes modelled outcomes Scenario weightings continue to
Slide 54: Collective provisions and scenario outcomes: Model inputs
Collective provisions and scenario outcomes Model inputs Unemployment (%) Gross Domestic Product (%) 12% 8% 10% 6% 4% 8% 2% 6% 0% -2% 4% -4% 2% -6% Dec-25 Jun-26 Dec-26 Jun-27 Dec-27 Jun-28 Dec-28 Dec-25 Jun-26 Dec-26 Jun-27 Dec-27 Jun-28 Dec-28 Significant improvement Mild improvement Base scenario
Slide 55: LCR and NSFR
LCR and NSFR Funding and liquidity ratios remain well positioned Liquidity Coverage Ratio ($b)1 LCR full year (%)1 As at 31 December 2025 0.2 135.3% (0.5) 2.8 0.5 2.0 High quality 135.3 13.1 2.1 liquid assets 132.3 Other cashflows 5.6 Wholesale funding Customer deposits Jun-25 Qtr High quality Custo
Slide 56: Customer deposits
Customer deposits Deposit split and funding costs Customer deposits - by type Customer deposit – funding costs $73.7b $9.1b 0.2% 0.1% Term Deposits 5.5% 71.4% 22.3% <= 1.00% $25.0b 0.4% > 1.00% - <= 2.00% > 2.00% - <= 3.00% > 3.00% - <= 4.00% > 4.00% - <= 5.00% > 5.0% 6.3% Savings 34.6% 9.8% 44.4% 4
Slide 57: Capital
Capital Strong CET1 capital position provides flexibility CET1 ratio – using standardised RWA1 S&P RAC Ratio2 BEN CET1 ratio approx. 26% BEN S&P RAC ratio approx. 22% higher than major bank average higher than major bank average 13.8% 11.37% 12.4% 11.6% 11.19% pro-forma 9.08% 9.19% 11.0% 8.73% 8.48%
Slide 58: Dividend
Dividend Consistent returns for shareholders Dividends (cents per share) Payout ratio1 63% 64% 64% 75% 66% • 1H26 dividend in line with 1H25 • Dividend levels managed across the year 33 33 • Target payout ratio 60-80% of cash earnings 30 30 30 • Prudently managing capital via DRP • Shares issued und
Slide 59: Summary of RACQ Bank Book Acquisition
Summary of RACQ Bank Book Acquisition • BEN to acquire the retail loans and deposits of RACQ Bank at book value at completion • Strategic referral agreement will commence post-completion • At 30 June 2025, ‘transferring book’ comprised loans of $2.7bn and retail deposits of $2.5bn Earnings Financial
Slide 60: Driving Shareholder Value
Driving Shareholder Value Deposits, productivity and sustainable growth +20bps +3pp 90k Customers 2 Uplift to lower cost deposits Queensland residential lending portfolio Integrated into one core banking system Optimise Deposit Franchise Sustainable Growth Productivity > Uplift to lower cost deposit
Slide 61: Abbreviations
Abbreviations Lower Cost Deposits –Transaction and savings 1H25 – First half of financial year 2025 bps – basis points accounts combined 1H26 – First half of financial year 2026 CAGR – Compound annual growth rate MFI – Main Financial Institution 1 Cash Earnings - Statutory earnings adjusted for non-
Slide 62: 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 63: 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 — H1 2026 Earnings Presentation on 6ix