Q1 FY26 Trading Update
| Stock | BNK Banking Corporation Ltd (BBC.ASX) |
|---|---|
| Release Time | 30 Oct 2025, 9:06 a.m. |
| Price Sensitive | Yes |
BNK Achieves Margin Expansion and Strategic Portfolio Growth
- Underlying Q1 FY26 profit after tax of $302k
- Commercial loan book surpassed $160 million
- Higher-margin lending settlements up 273% vs Q1 FY25
BNK Banking Corporation Limited (ASX: BBC) has provided a trading update for the first quarter of FY26 (Q1 FY26), highlighting key achievements and financial performance. The company reported an underlying (unaudited) Q1 FY26 profit after tax of $302k, compared to $787k in Q1 FY25, and a statutory (unaudited) Q1 FY26 profit after tax of $75k, compared to $272k in Q1 FY25. The commercial loan book surpassed $160 million as selective growth continued, and the company established Senior Secured Investments during the quarter. Higher-margin residential and commercial lending settlements of $56 million in Q1 FY26 represented a 273% increase compared to Q1 FY25, with higher-margin balances now comprising 37% of the loan book. The total loan book, including senior secured lending, grew 4.2% from 30 June 2025 to $941 million, while total deposits decreased 1.5% to $994 million. The Net Interest Margin (NIM) improved to 1.83% in Q1 FY26, up from 1.38% in Q1 FY25. Arrears remained within expectations, with the 90+ day residential home loan arrears decreasing to 1.04% and the 90+ day commercial loan arrears increasing to 1.22%. Operating expenses increased by 13% from Q1 FY25, reflecting investments in the company's strategy and overall capability. BNK also completed the sale of its non-core legacy Adelaide Bank loan portfolio to Bendigo Bank, effective 1 October 2025, as part of its ongoing strategy to streamline operations and focus on core activities.
BNK expects heightened global macro-economic uncertainty and volatility to continue to influence market conditions, but the company remains focused on navigating these dynamics with agility while executing its strategy to deliver long-term, sustainable growth.
BNK is positioned well to navigate the evolving economic landscape with strong capital and liquidity ratios, and the company is exploring new asset opportunities and evaluating potential partnerships for profitable growth.