BNK Banking Corporation Limited (BBC) AI Stock Analysis

• Market Cap: AU$33.85M
• Dividend Yield: N/A
• Average Volume (3M): 82.01K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.75
• Revenue Growth: -7.19%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): <0.01
• Shares Outstanding: 118,780,030
• 10 Day Avg. Volume: 40,501
• 30 Day Avg. Volume: 82,014
• PEG Ratio: -0.23
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 0.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.29 ▲(1.03% Upside)

The score is driven primarily by improved FY2025 financials (profitability return, strong cash generation, and reduced leverage), but is held back by high historical volatility and low ROE. Technicals indicate a largely sideways setup with slightly negative momentum, while valuation looks relatively rich at ~25.9x earnings without a dividend yield provided.

Positive Factors

Return to Profitability

BNK's return to profitability in FY25, with a statutory NPAT of $1.3 million, indicates successful execution of strategies and financial resilience, positioning the company for sustainable growth.

Improved Cash Generation

The significant improvement in cash flow generation in FY2025 enhances BNK's financial flexibility and ability to invest in growth opportunities, supporting long-term stability.

Strategic Portfolio Growth

The strategic expansion in lending portfolio and margin improvement in Q1 FY26 highlights BNK's focus on higher-margin lending, which can drive long-term profitability and market competitiveness.

Negative Factors

Revenue Volatility

The volatility in revenue suggests challenges in maintaining consistent growth, which could impact long-term financial planning and investor confidence.

Low Return on Equity

A low ROE indicates inefficient use of equity capital, which may hinder BNK's ability to attract investment and compete effectively in the banking sector.

High Historical Volatility

The historical volatility in financial metrics raises concerns about BNK's ability to deliver stable performance, potentially affecting long-term strategic initiatives and market perception.

BNK Banking Corporation Limited Business Overview & Revenue Model

Company Description

BNK Banking Corporation Limited provides various retail banking products and services in Australia. It operates through two segments, Banking and Aggregation segments. The company accepts various deposit products, including savings accounts, term deposits, and business accounts; and provides home and business loans under the Goldfields Money and Better Choice Home Loans brands to its retail and small business customers. It also offers general insurance products related to home and contents, motor vehicle, landlord rent cover, accident, travel, tenant contents, income protection, and business/trades. In addition, the company provides mortgage management and broker aggregation services. BNK Banking Corporation Limited was incorporation in 1982 and is based in Perth, Australia.

How the Company Makes Money

BNK Banking Corporation Limited makes money through interest income from loans, including mortgages and personal loans, as well as fees from various banking services. The company also generates revenue from investment products and wealth management services. Additionally, BBC benefits from partnerships with financial technology firms to enhance its digital banking capabilities, which further aids in customer acquisition and retention, contributing to its earnings.

BNK Banking Corporation Limited Financial Statement Overview

Summary

FY2025 shows meaningful improvement with a return to profitability (net income 1.3m), significantly stronger operating/free cash flow (~444m), and materially lower leverage (debt-to-equity ~0.74 vs ~2.65 in FY2024). The main risk is consistency: revenue, margins, and cash flows have been highly volatile across recent years, and ROE remains low (~1.1%).

Income Statement

Profitability improved sharply in FY2025 with a return to positive earnings (net income of 1.3m) after losses in FY2024–FY2023, and operating profit also turned positive. However, reported revenue is volatile (down materially in FY2025 vs FY2024 despite a high growth rate off a smaller base), and margins have swung meaningfully year-to-year (including unusually high net margin in FY2022), which reduces confidence in earnings consistency.

Balance Sheet

Leverage has improved significantly: debt-to-equity fell to ~0.74 in FY2025 from ~2.65 in FY2024, indicating a healthier capital position versus the prior year. That said, returns remain low (return on equity ~1.1% in FY2025), and total assets declined from FY2024, suggesting balance sheet resizing and still-limited profitability on the capital base.

Cash Flow

Cash generation rebounded strongly in FY2025 with operating cash flow of ~444.3m and free cash flow of ~444.0m, a major turnaround from negative cash flow in prior years. Free cash flow is broadly in line with net income, but the cash flow trajectory is highly volatile (large outflows in FY2021–FY2022 followed by a sharp reversal), which is a key risk for predictability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.19M	26.19M	92.86M	66.31M	21.41M	26.15M
Gross Profit	26.19M	26.19M	15.94M	14.45M	4.68M	37.52M
EBITDA	1.99M	1.99M	0.00	-4.84M	-15.63M	-5.11M
Net Income	1.28M	1.28M	-6.70M	-3.94M	59.79M	5.66M
Balance Sheet
Total Assets	1.23B	1.23B	1.72B	1.68B	1.44B	1.32B
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	325.44M	294.77M	407.14M	204.25M
Total Debt	90.45M	90.45M	321.44M	285.58M	246.38M	64.63M
Total Liabilities	1.11B	1.11B	1.60B	1.55B	1.24B	1.19B
Stockholders Equity	122.04M	122.04M	121.12M	128.18M	190.38M	127.97M
Cash Flow
Free Cash Flow	443.99M	443.99M	-2.34M	-16.22M	-460.31M	-247.51M
Operating Cash Flow	444.25M	444.25M	-2.32M	-16.22M	-460.31M	-247.07M
Investing Cash Flow	166.28M	-267.00K	-7.57M	64.92M	371.35M	204.02M
Financing Cash Flow	-320.46M	-494.01M	35.66M	-19.82M	181.70M	72.21M

BNK Banking Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BBC, the sentiment is Negative. The current price of 0.29 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and above the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BBC.

BNK Banking Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTL	61 Neutral	AU$49.62M	10.29	15.13%	5.00%	16.64%	19.30%
CIW	53 Neutral	AU$30.12M	53.68	2.42%	2.03%	18.17%	―
MYS	53 Neutral	AU$760.20M	16.97	5.92%	4.63%	26.01%	-17.55%
BBC	52 Neutral	AU$33.85M	26.39	1.06%	―	-7.19%	―
WZR	42 Neutral	AU$56.27M	-6.15	-19.44%	―	-2.35%	13.33%
BTN	40 Underperform	AU$24.07M	-6.63	-26.29%	―	8.28%	84.45%

BNK Banking Corporation Limited Corporate Events

BNK Banking Corporation Appoints New Director

BNK Banking Corporation Limited has announced the appointment of Raj Ashwinn Venga as a director, effective November 26, 2025. The initial director’s interest notice indicates that Mr. Venga currently holds no securities or interests in contracts with the company, suggesting a fresh start in his role. This appointment could potentially influence the company’s strategic direction and governance, although the immediate impact on stakeholders or market positioning is not detailed in the release.

BNK Banking Corporation Announces Board Changes

BNK Banking Corporation Limited has announced changes to its Board of Directors, effective immediately. Elizabeth Aris has resigned as an Independent Non-Executive Director, and Raj Venga has been appointed to the same position. Venga brings extensive experience in banking and financial services, including expertise in credit regulation and risk management. His appointment is expected to enhance BNK’s governance and strategic objectives, balancing growth with risk oversight.

BNK Banking Corporation Successfully Passes All AGM Resolutions

BNK Banking Corporation Limited announced that all resolutions at its 2025 Annual General Meeting were passed with the necessary majorities via a poll. This outcome reflects the company’s stable governance and shareholder support, potentially strengthening its position in the financial industry and reassuring stakeholders of its strategic direction.

BNK Banking Corporation Achieves Turnaround with Return to Profitability in FY25

BNK Banking Corporation Limited announced a significant turnaround in its financial performance for FY25, marking a return to profitability after several years. The company reported an underlying NPAT of $3.8 million and a statutory NPAT of $1.3 million, a notable improvement from the previous year’s loss. Key achievements include a 13% increase in net interest income, a 46 basis point rise in net interest margin, and a significant reduction in the cost-to-income ratio. These results highlight BNK’s successful execution of its strategy focused on portfolio optimization, cost management, and higher-margin lending, positioning the company for sustainable growth and demonstrating financial resilience.

BNK Banking Corporation Reports Strategic Portfolio Growth and Margin Expansion in Q1 FY26

BNK Banking Corporation Limited reported a strategic expansion in its lending portfolio and an improvement in net interest margins for the first quarter of FY26. Despite a decrease in profit after tax compared to the previous year, the company achieved significant growth in higher-margin lending settlements and established senior secured investments. The sale of a non-core legacy loan portfolio to Bendigo Bank is expected to enhance operational efficiencies. BNK remains focused on navigating global economic uncertainties with a strong capital position and plans to explore new asset opportunities for sustainable growth.