• Cash earnings of $256.4 million, up 2.8% on 2H25
• Interim dividend of 30 cents per share, stable on prior period
• Digital transformation progressed with Bendigo Lending Platform rollout

Bendigo and Adelaide Bank reported cash earnings of $256.4 million for the first half of FY26, up 2.8% on the prior half and down 3.3% on the prior comparative period. The Board determined to pay a fully franked interim dividend of 30 cents per share, which is stable on the prior comparative period. The result reflects good progress on the bank's strategy, with its deposit-led approach to drive sustainable loan growth gaining momentum and improving earnings. This was largely driven by growth in lower-cost deposits benefiting margin, as well as a reduction in costs in the second quarter. The bank also made the strategic decision to exit its legacy mortgage partner business, which impacted loan growth for the half. The bank's digital transformation progressed with the full rollout of the Bendigo Lending Platform to all branches, the launch of direct customer onboarding through the Bendigo Bank app, and a new partnership with Google. The bank also completed the final phase of its multi-year core banking simplification project with the migration of 180,000 Adelaide Bank customer accounts to the Bendigo Bank platform. The bank's agreement to acquire RACQ Bank's loans and deposits book, set for completion in 1H27, will leverage its proven capability to integrate new customers and increase its Queensland exposure. The bank is launching a significant AML/CTF uplift program with an initial estimated cost of $70 million to $90 million, with $15 million expected in 2H26. The bank's balance sheet and capital position remains strong and well positioned for a return to growth in the second half of the financial year.

The bank expects to incur approximately $15 million on the AML/CTF Remediation Program and approximately $10 million on the initial work for the migration of RACQ's loan and deposit book in the next six months, to be funded through its previously guided investment spend.

The Australian economy is showing positive signs, with a strong labour market and a recent surge in business investment. However, there are headwinds including lagging productivity, rising core inflation, and ongoing trade and geopolitical uncertainties. The bank's balance sheet is well positioned for growth and resilient to external pressures, and it remains committed to delivering improved value for shareholders.