• Cash earnings of $256.4 million, up 2.8% vs H2FY25
• Interim dividend of 30 cents per share, stable vs prior period
• Deposit-led approach driving sustainable loan growth and improved earnings

Bendigo and Adelaide Bank Limited (ASX:BEN) today reported cash earnings of $256.4 million and statutory net profit after tax of $230.6 million for the half year ended 31 December 2025. Cash earnings were 2.8% higher than 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 driving sustainable loan growth 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 remains confident that its residential lending book will return to growth over the second half. Over the half, the bank delivered on several key milestones, including progress on its digital transformation, completion of its core banking simplification project, and an agreement to acquire RACQ Bank's loans and deposits book. To address deficiencies in its AML/CTF approach, the bank is launching a significant uplift program with an initial estimated cost of $70-90 million. The bank's balance sheet and capital position remains strong and well positioned for a return to growth in the second half.

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 the bank remains committed to delivering improved value for shareholders, underpinned by its disciplined focus on optimising deposits, improving productivity, and delivering sustainable growth.