• Recorded cash earnings after tax of $256.4 million, up 2.8% on prior half
• Commenced addressing an AML/CTF matter, with AUSTRAC investigation and APRA $50 million capital overlay
• Paid a fully franked interim dividend of 30.0 cents per share

In H1FY26, Bendigo and Adelaide Bank recorded cash earnings after tax of $256.4 million, a 2.8% increase on the prior half but 3.3% lower than the prior comparative period. Cash earnings per share improved to 45.3 cents, and Return On Equity increased to 7.76%. The Bank self-disclosed and commenced addressing an Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) matter, leading to an AUSTRAC enforcement investigation and a $50 million capital overlay imposed by APRA. The Board is fully committed to rectifying the identified deficiencies and ensuring compliance with regulatory obligations. The Bank paid a fully franked interim dividend of 30.0 cents per share, in line with its target payout ratio of 60-80% of cash earnings. Total assets reduced 1.9% during the half, reflecting reduced residential lending, mostly in third party originated channels. Business lending grew 2.8%, led by the Portfolio Funding business, while Agri lending declined 6.2%. Customer deposits grew 1.1%, with lower cost deposits increasing 3.6%. Income increased 3.7% on the prior half, with Net Interest Margin improving 7 basis points to 1.92%. Operating expenses increased 4.2%, driven by higher staff costs, software amortization, and remediation expenses, though second quarter expenses were 1.9% lower than the first quarter. The credit performance of the portfolio remained resilient, with a net credit write-back of $2.4 million.

The Board remains committed to investing the capital required to drive the Bank's 2030 strategic initiatives while uplifting its AML/CTF risk management capabilities and integrating the RACQ Bank loan and deposit books. The Bank's commitment to achieving a ROE of above 10% by 2030 is unchanged and supported by its disciplined focus on business-as-usual cost growth of 'no higher than inflation through the cycle' and driving a deposit-led approach to sustainable growth in lending.