Bendigo & Adelaide Bank reported a net profit of A$375.1 million for the 12 months ended June 30, reversing a A$97.1 million loss in the prior fiscal year that included a A$539.5 million goodwill impairment. The lender’s revenue from ordinary activities rose 2.8% to A$1.99 billion, while cash earnings—a preferred measure of underlying performance—climbed 3.0% to A$530.2 million.
Total regulatory provisions and associated costs after tax amounted to A$58.8 million, including A$9.8 million for breaches of the Banking Act and A$49.0 million allocated to a rectification plan expected to conclude in approximately three years. Net interest income increased due to higher lower-cost deposits and disciplined funding management, though other income declined from lower property revaluation gains in the Homesafe portfolio, reduced foreign exchange and hedging income, and the absence of one-time proceeds from the prior year’s sale of Bendigo Superannuation.
Operating expenses rose, driven by higher amortization, technology investments for risk and digital capabilities, and implementation costs for RACQ Bank, partially offset by lower staff costs following the completion of the Rural Bank migration. Credit expenses increased as the bank adopted a cautious stance amid updated macroeconomic forecasts and elevated geopolitical risks, though credit performance remained resilient.
The board declared a final dividend of 33.0 cents per share, bringing the total annual dividend to the same level as fiscal 2025 when combined with the interim dividend of 30.0 cents per share.
