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BNK Banking Corporation Limited (AU:BBC)
ASX:BBC
Australian Market

BNK Banking Corporation Limited (BBC) AI Stock Analysis

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AU

BNK Banking Corporation Limited

(Sydney:BBC)

45Neutral
The overall stock score of 45 reflects significant financial challenges faced by BNK Banking Corporation Limited, notably in terms of profitability and cash flow generation. High leverage further exacerbates these risks. While technical analysis shows some short-term momentum, the valuation remains a concern with a negative P/E ratio and no dividend yield. These factors collectively indicate a cautious outlook for the stock.

BNK Banking Corporation Limited (BBC) vs. S&P 500 (SPY)

BNK Banking Corporation Limited Business Overview & Revenue Model

Company DescriptionBNK Banking Corporation Limited (BBC) is a financial services institution operating primarily in the banking sector. The company offers a suite of banking products and services, including personal and business banking, mortgage lending, and financial advisory services. BBC aims to provide comprehensive financial solutions to individuals and businesses, leveraging technology and customer service to enhance its offerings.
How the Company Makes MoneyBNK 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
The financial performance of BNK Banking Corporation Limited is under significant pressure. The income statement reveals consistent losses, declining revenues, and negative net profit margins. The balance sheet shows high leverage with a debt-to-equity ratio of 2.65, though there is some stability with a 7% equity ratio. Meanwhile, cash flow issues are apparent with negative free and operating cash flows, indicating a reliance on financing activities for liquidity.
Income Statement
35
Negative
The income statement shows a concerning trend with consistent losses over the recent years. The net profit margin is negative due to the net losses, and revenue has significantly decreased from 2020 to 2024. The absence of EBIT and EBITDA margins in 2024 highlights profitability issues.
Balance Sheet
60
Neutral
The balance sheet reflects a high level of debt with a debt-to-equity ratio of approximately 2.65 in 2024, indicating significant leverage. However, the company maintains a satisfactory equity ratio of about 7% in 2024, showing that equity is a small but stable part of the capital structure.
Cash Flow
40
Negative
Cash flow analysis highlights negative free cash flow and operating cash flow, indicating challenges in generating cash from operations. There is a heavy reliance on financing activities for liquidity, as shown by significant financing cash flow in 2024.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
25.97M20.84M66.31M21.41M26.15M315.59M
Gross Profit
62.88M20.84M66.31M21.41M26.15M315.59M
EBIT
4.09M0.00-5.18M-16.00M-5.11M4.85M
EBITDA
765.00K0.000.000.000.000.00
Net Income Common Stockholders
-4.57M-6.70M-3.94M59.79M5.66M3.82M
Balance SheetCash, Cash Equivalents and Short-Term Investments
94.16M325.44M90.71M140.03M47.28M48.74M
Total Assets
1.55B1.72B1.68B1.44B1.32B834.11M
Total Debt
321.70M321.44M285.58M246.38M64.63M4.65M
Net Debt
227.54M111.11M194.87M106.36M17.34M-44.09M
Total Liabilities
1.43B1.60B1.55B1.24B1.19B724.87M
Stockholders Equity
121.08M121.12M128.18M190.38M127.97M109.24M
Cash FlowFree Cash Flow
185.08M-2.34M-16.22M-460.31M-247.51M-70.10M
Operating Cash Flow
185.12M-2.32M-16.22M-460.31M-247.07M-68.73M
Investing Cash Flow
-70.60M-7.57M64.92M371.35M204.02M64.70M
Financing Cash Flow
-173.85M35.66M-19.82M181.70M72.21M5.69M

BNK Banking Corporation Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.32
Price Trends
50DMA
0.29
Positive
100DMA
0.29
Positive
200DMA
0.31
Positive
Market Momentum
MACD
0.01
Negative
RSI
69.90
Neutral
STOCH
75.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BBC, the sentiment is Positive. The current price of 0.32 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 0.31, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.90 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BBC.

BNK Banking Corporation Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUBEN
72
Outperform
$6.61B13.776.89%5.52%15.88%-9.53%
AUSUN
70
Outperform
AU$22.30B15.839.52%4.96%-11.75%
AUMYS
66
Neutral
AU$669.59M12.987.25%5.55%14.46%-6.87%
64
Neutral
$12.74B9.837.63%17000.35%12.34%-5.32%
AUBOQ
54
Neutral
$5.01B16.405.20%4.68%9.76%11.92%
AUBBC
45
Neutral
AU$37.40M-3.69%15.05%-48.84%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BBC
BNK Banking Corporation Limited
0.32
-0.04
-11.11%
AU:BEN
Bendigo & Adelaide Bank
11.84
1.69
16.65%
AU:SUN
Suncorp Group
20.59
5.30
34.62%
AU:BOQ
Bank of Queensland
7.68
1.99
34.93%
AU:MYS
Mystate Limited
3.94
0.56
16.57%

BNK Banking Corporation Limited Corporate Events

BNK Banking Corporation Announces New ASX Communications Contact
Apr 30, 2025

BNK Banking Corporation Limited has announced that effective 1 May 2025, Ms. Jenny Spicer, the current Company Secretary, will be responsible for communications with the ASX under Listing Rule 12.6. This change is expected to streamline BNK’s communication processes with the ASX, potentially enhancing the company’s operational efficiency and stakeholder engagement.

BNK Banking Corporation Achieves Profitability and Strategic Growth in Q3 FY25
Apr 28, 2025

BNK Banking Corporation Limited reported a significant improvement in its financial performance for Q3 FY25, with a profit after tax of $1,728k compared to a loss in the previous year. The company strategically sold $220 million in loans to Bendigo Bank, enhancing its balance sheet and generating $2.0 million in net revenue. BNK’s focus on higher-margin lending and effective margin management has led to an improved Net Interest Margin and a strong capital position, positioning the company well for sustainable, long-term profitability.

BNK Banking Corporation Corrects Director’s Interest Notice
Apr 9, 2025

BNK Banking Corporation Limited announced a correction to a previously released Change of Director’s Interest Notice concerning Mr. Calvin Ng. The correction was made due to an administrative oversight where the acquisition of 18,907 Ordinary Shares was not initially reported. The company has assured stakeholders that its current reporting and notification practices are adequate to ensure compliance with ASX Listing Rules, and considers this incident isolated.

BNK Banking Corporation Director Increases Shareholding
Mar 14, 2025

BNK Banking Corporation Limited has announced a change in the director’s interest, with Kar Wing (Calvin) Ng acquiring an additional 45,000 ordinary shares through indirect interest. This acquisition, conducted via on-market trades, increases Ng’s total indirect holdings to 5,388,917 ordinary shares. The transaction reflects the director’s growing stake in the company, potentially signaling confidence in BNK’s future performance and impacting shareholder perceptions.

BNK Banking Corporation’s CEO to Present at Coffee Microcaps Conference
Feb 28, 2025

BNK Banking Corporation Limited announced that CEO Allan Savins will present at the Coffee Microcaps conference, highlighting the company’s strategic initiatives and performance. This presentation is part of BNK’s efforts to engage with investors and stakeholders, potentially impacting its market positioning and investor relations.

BNK Banking Corporation Limited Reports 1H25 Financial Results
Feb 25, 2025

BNK Banking Corporation Limited has announced its financial results for the first half of 2025. The presentation, led by CEO Allan Savins and CFO Steve Kinsella, covered the company’s financial performance, strategic updates, and future outlook. This announcement is crucial for stakeholders as it provides insights into the company’s operational health and strategic direction, potentially impacting its market positioning and investor confidence.

BNK Banking Corporation Reports Strong 1H25 Results with Strategic Focus on High-Margin Lending
Feb 25, 2025

BNK Banking Corporation Limited reported a significant improvement in its financial performance for the first half of 2025, with a notable increase in net interest income and net interest margin. The company’s strategic shift towards high-margin lending and selective growth has resulted in stronger returns, despite a decline in lending settlements. BNK’s robust capital position and ongoing technology transformation are expected to support its long-term profitability and competitive positioning. The company is also exploring new opportunities in deposit and asset classes while maintaining resilience amid economic challenges.

BNK Banking Corporation Reports Strong Half-Year Financial Performance
Feb 25, 2025

BNK Banking Corporation Limited announced a significant improvement in its financial performance for the half year ending December 31, 2024, with a 58% increase in revenue from operations and a 118% rise in profit after tax compared to the previous year. Despite the positive financial results, the company did not declare any dividends for the period, indicating a potential focus on reinvestment or maintaining liquidity.

BNK Banking Corporation Announces Strategic Sale of Mortgage Assets
Feb 21, 2025

BNK Banking Corporation Limited has announced a strategic sale of approximately $220 million worth of prime residential mortgages from the Bendigo Warehouse facility to Bendigo Bank, resulting in a net sale profit of around $2 million. This move is part of BNK’s strategy to optimize asset allocation, maintain strong relationships with Bendigo Bank and Realm Investment House, and align its balance sheet management with strategic objectives, with the transaction expected to reflect in the H2 2025 financial results.

BNK Expands Assuro Collaboration with New Bank Guarantee Product
Feb 12, 2025

BNK Banking Corporation Limited has expanded its partnership with Assuro by introducing a second bank guarantee product on Assuro’s digital platform. This new high-value guarantee complements their existing low-cost option and offers a competitive variable interest rate for bank guarantees over $50,000 without ongoing fees. This move aligns with BNK’s strategy to make bank guarantees more accessible, efficient, and cost-effective for small to medium businesses, potentially enhancing their market position and providing value to stakeholders.

BNK Banking Corporation to Unveil Half Year Financial Results
Feb 12, 2025

BNK Banking Corporation Limited will announce its Half Year Financial Results for the period ending 31 December 2024 on 26 February 2025. The release will be accompanied by a conference call hosted by the CEO and CFO, allowing for a presentation and Q&A session. This announcement underscores BNK’s commitment to transparency and engagement with its shareholders, providing a strategic opportunity to discuss its financial health and future prospects.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.