• Underlying NPAT of $1.8m, up $3.0m on 1H24
• Net Interest Income of $11.1m, up 29% on 1H24
• Net Interest Margin improved by 47 bps on 1H24 to 1.39%

BNK Banking Corporation Limited (ASX:BBC) reported its financial results for the first half of 2025 (1H25), highlighting several key achievements. The company's underlying NPAT increased by $3.0 million to $1.8 million compared to 1H24. Net Interest Income grew by 29% to $11.1 million, and the Net Interest Margin improved by 47 basis points to 1.39% on 1H24. Other Income also increased significantly, up $2.6 million (187%) on 1H24. While lending settlements dropped 29% on 1H24, this was in line with BNK's strategic focus on selective high-margin lending business. The company maintained a strong Customer Deposit to Total Loan Ratio of 93%, providing a stable funding base. Higher-margin lending now accounts for nearly 22% of the total portfolio. BNK continues to make progress on its technology transformation, with key foundations being developed to support continued progress. The company is well-capitalized, with a Capital Adequacy Ratio of 26.98%. Looking ahead, BNK expects to benefit from the Reserve Bank of Australia's official rate cut in February, anticipating a further reduction in funding costs. The company's focus on asset mix optimization, high-margin lending, and cost-effective funding, coupled with disciplined expense management, is expected to support sustainable underlying profit generation, though the rate of progression may vary over time.

BNK expects its diversified income streams and strategic portfolio shifts to support sustainable underlying profit generation, though the rate of progression may vary over time.

BNK will continue to explore opportunities in new deposit and asset classes, while also evaluating potential inorganic growth and distribution partnerships where suitable. The company remains well-provisioned and confident in its ability to navigate the evolving economic environment.