• Underlying Q3 FY26 profit after tax of $621k, down from $1,728k in Q3 FY25
• Net Interest Margin grows to 2.11% in Q3 FY26, up from 1.65% in Q3 FY25
• Commercial loan book surpasses $210m, a 100% increase from Q3 FY25

BNK Banking Corporation Limited (ASX: BBC) has provided a trading update for the third quarter of FY26. The company reported an underlying (unaudited) Q3 FY26 profit after tax of $621k, down from $1,728k in Q3 FY25. The statutory (unaudited) Q3 FY26 profit after tax was $414k, compared to $1,293k in Q3 FY25. The company's Net Interest Margin (NIM) grew to 2.11% in Q3 FY26, up from 1.65% in Q3 FY25, driven by continued growth in higher-margin lending and the company's entry into senior secured credit transactions during FY26. BNK's commercial loan book surpassed $210m, a 100% increase from Q3 FY25, demonstrating solid execution of the company's strategy. The total loan book stood at $984m at 31 March 2026, with total deposits of $1.027bn, providing a stable funding base. The company also reported a reduction in 90+ day residential home loan arrears and commercial loan arrears, and a strong capital position with a Capital Adequacy Ratio of 26.4% at 31 March 2026.

The company expects some moderation in Q4 FY26 NIM, reflecting heightened and persistent funding competition and further impacts of the RBA rate increases. However, the company believes the improvement in NIM and arrears, and the enhanced funding program through the addition of NCDs, positions BNK well for stronger growth in 2027.