Bendigo 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, driven by higher net interest income and reduced goodwill impairment charges.
Revenue from ordinary activities rose 2.8% to A$1.99 billion, supported by growth in net interest income as the bank benefited from increased lower-cost deposits and disciplined funding management. Underlying cash earnings, a key performance metric, increased 3.0% to A$530.2 million.
The bank declared a final dividend of 33 cents per share, bringing the total annual dividend to the same level as fiscal year 2025. The interim dividend was set at 30 cents per share.
Regulatory costs totaled A$58.8 million after tax, including A$9.8 million related to breaches of the Banking Act and A$49.0 million allocated to a remediation plan, with completion expected within three years. Operating expenses rose due to higher amortization, technology investments, and RACQ Bank integration costs, partially offset by lower personnel expenses following the Rural Bank migration.
Other revenue components declined, reflecting lower property revaluation gains in the Homesafe portfolio, reduced foreign exchange and hedging revenues, and the absence of one-off proceeds from the prior year's sale of Bendigo Superannuation. Credit expenses increased as the bank adopted a more conservative stance amid updated macroeconomic projections and elevated geopolitical risks, though overall credit performance remained resilient.
