Bendigo and Adelaide Bank has announced its unaudited financial results for the fiscal year 2026, reporting a statutory net profit after tax of $375.1 million. The results come as the bank commits to a significant overhaul of its risk management practices, prompted by new licence conditions imposed by the Australian Prudential Regulation Authority (APRA). The bank’s Common Equity Tier 1 (CET1) ratio remains strong at 11.34%.

FY26 Financial Performance Highlights

The bank’s statutory net profit after tax for FY26 stood at $375.1 million. This figure includes $49.0 million after tax allocated to a risk rectification plan and $9.8 million for legal penalties, underscoring the financial impact of recent risk management challenges. In contrast, cash earnings, a measure often viewed as a proxy for underlying performance, reached $530.2 million after tax, marking a 3% increase compared to FY25.

Key financial metrics also showed positive movement in certain areas. The Net Interest Margin (NIM) improved by 7 basis points to 1.95% over the full year, with a stronger performance in the second half of FY26, reaching 1.98%. Lending activity saw a 3.5% increase in the latter half of the fiscal year, with notable growth in residential mortgages, agribusiness, and portfolio funding sectors. Customer deposits grew by 2.2% over the year, bringing the total to $74.1 billion.

Operational efficiency was also a focus, with operating expenses decreasing by 2.1% in the second half of FY26, attributed to ongoing productivity initiatives.

Commitment to Risk Rectification

A central theme in the FY26 results is Bendigo and Adelaide Bank’s proactive response to APRA’s imposed licence conditions concerning its non-financial risk management. The bank has formally