The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is in focus today after the bank reported a strong start to FY27, with unaudited cash earnings up 18.5% to $112.7 million, and solid deposit growth driven by term deposits.
What did Bendigo and Adelaide Bank report?
- Unaudited cash earnings: $112.7 million for the quarter, up 18.5% vs 2H26 quarterly average
- Statutory net profit after tax: $66.0 million, down 8.6% on last quarter
- Net interest margin (NIM): 1.94%, down 6 basis points from 4Q26
- Customer deposits: $74.3 billion, up 4.8% annualised with term deposits rising 13.3% annualised
- Lending balances: contracted 3.1% annualised; residential loans down 0.8%; business lending (ex. Portfolio Funding) up 3.4% annualised
- Operating expenses: down 5.8% on 2H26 quarterly average
What else do investors need to know?
Bendigo Bank updated its financial reporting disclosure, now presenting on a cash basis with notable items included—bringing the bank in line with peers and making performance easier to compare. Several items previously reported as non-cash—like strategic partnership costs and one-off regulatory remediation—are now classified as notable items.
The deposit mix continued to shift, with strong growth in term deposits but a contraction in lower-cost deposits, now making up just over half of all deposits. Loan growth was mixed: residential lending softened, while parts of the business lending segment saw modest gains despite a larger client exit impacting overall numbers. Credit expenses were $6.8 million, reflecting small increases in business portfolio provisions.
What did Bendigo and Adelaide Bank management say?
Managing Director and CEO Richard Fennell said:
Our balance sheet is strong and remains well positioned for future growth while addressing these regulatory matters. We are also progressing the building of digital onboarding capability for our Business & Agribusiness sole trader customers, which we expect to release in 2Q27.
What’s next for Bendigo and Adelaide Bank?
Looking ahead, Bendigo and Adelaide Bank plans to continue developing digital onboarding for business and agribusiness customers, aiming to make its services more accessible and efficient. The Up brand recently expanded its home loan offering to investors, broadening its appeal.
Management is keeping a close eye on loan quality and cost-of-living pressures for customers, and says the bank’s strong balance sheet leaves it well-prepared for future opportunities as regulatory work continues.
Bendigo and Adelaide Bank share price snapshot
Over the past 12 months, Bendigo and Adelaide Bank shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined
The post Bendigo and Adelaide Bank posts higher 1Q27 cash earnings on deposit growth appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.