Bendigo & Adelaide Bank (BEN) AI Stock Analysis

• Market Cap: AU$6.07B
• Dividend Yield: 5.99%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 5.39%
• EPS Growth: -117.83%
• Country: AU
• Employees: 4,812
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.45
• Shares Outstanding: 568,292,850
• 10 Day Avg. Volume: 1,819,607
• 30 Day Avg. Volume: 2,063,991
• PEG Ratio: 0.63
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 4.26
• 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: AU$10.66
• Price Target Upside: -1.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): AU$2.00B

• Rating: 51 Neutral
• Price Target: AU$11.50 ▲(5.89% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is held back primarily by weakened financial performance and inconsistency (latest annual net loss and negative ROE, plus volatile cash flow history). Offsetting factors include a constructive earnings call with improving NIM, capital/liquidity strength and productivity progress, a high dividend yield, and modestly improving near-term technical momentum, though longer-term trend signals remain weak and AML/CTF remediation/regulatory uncertainty is a key overhang.

Positive Factors

Capital & liquidity strength

The bank's CET1 ratio above the board target and a high LCR provide a durable regulatory and funding buffer. Strong household deposit-to-loan positioning reduces reliance on wholesale funding, supporting lending capacity and resilience to shocks or remediation costs over the next 2–3 years.

Net interest margin improvement

An improving NIM, albeit modest, reflects better funding mix and pricing discipline, directly supporting core net interest income. Sustained NIM gains combined with a higher share of lower-cost deposits create lasting earnings capacity and a buffer for cost recovery and investment over coming quarters.

Digital transformation & Up profitability

Early profitability at Up plus rapid digital onboarding, core system consolidation and AI-driven productivity indicate durable structural gains. These reduce unit costs, improve customer acquisition economics and support higher digital deposit share, strengthening long-term competitive position and scalability.

Negative Factors

AML/CTF remediation & regulatory overhang

A multi-year remediation program plus a regulatory capital overlay creates a persistent earnings and capital drain, forces reprioritisation of investment, and leaves unresolved enforcement risk. This overhang materially constrains management flexibility and increases execution risk for 2–3 years.

Profitability volatility and recent net loss

The swing to a net loss and negative ROE signals unstable earnings quality. Persistent volatility in profits undermines internal capital generation, threatens dividend sustainability and complicates planning, making multi-period returns and credit provisioning harder to predict over the medium term.

Lending contraction and rising credit risk

Contraction in residential lending and exits from third-party channels reduce organic volume growth and fee income. Rising arrears and management expectation of higher bad debts increase provisioning risk, pressuring margins and capital over time and requiring extra monitoring of portfolio performance.

Bendigo & Adelaide Bank Business Overview & Revenue Model

Company Description

Bendigo and Adelaide Bank Limited provides banking and financial products and services to retail customers and small to medium sized businesses in Australia. The company operates through Consumer, Business and Agribusiness, and Corporate segments. It offers a range of products and services, including personal and business banking, financial planning, commercial mortgages and unsecured loans, investment products, insurance, and superannuation. The company also provides retail banking products and services; home loans for the mortgage broker and mortgage manager market; rural bank products and services; wealth management services; investments and funds management services, commercial loans, access to funeral bonds, estates and trusts management services, and corporate trustee and custodial services; and banking products and services to agribusiness participants. It operates 139 Bendigo Bank, 314 Community Bank, 13 Delphi Bank, 16 Alliance Bank, and 4 private franchise branches, as well as 191 rural bank points. The company was founded in 1858 and is headquartered in Bendigo, Australia.

How the Company Makes Money

Bendigo & Adelaide Bank Ltd. generates revenue through a diversified model primarily focused on interest income from its lending activities. The bank earns money by issuing loans and mortgages to individuals and businesses, charging interest on the borrowed amounts. Additionally, it generates fee income from banking services such as account maintenance, transaction fees, and advisory services in wealth management. The bank also benefits from net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits. Furthermore, Bendigo & Adelaide Bank Ltd. forms strategic partnerships with community enterprises and organizations, which contribute to its growth and customer base. Other significant factors contributing to its earnings include its investment portfolio and insurance products, which provide additional streams of income, diversifying its revenue sources.

Bendigo & Adelaide Bank Financial Statement Overview

Summary

Financials are mixed and inconsistent: the latest annual period shows a swing to a net loss (net margin -1.8%) and negative ROE (-1.5%), despite still-positive operating margins. Leverage looks manageable for a bank and improved versus prior years, while operating/free cash flow rebounded strongly in 2025, but multi-year cash flow volatility and the earnings reversal keep the score below average.

Income Statement

Profitability deteriorated sharply in the latest annual period, with net income turning negative (-A$97.1M) and a net margin of -1.8%, despite a much larger reported revenue base (A$5.26B; +174.1% growth). Operating profitability remains positive (EBIT margin ~11.5%, EBITDA margin ~13.8%), but the swing from strong profits in prior years (e.g., A$545M net income in 2024) to a loss suggests elevated volatility and weaker earnings quality/consistency.

Balance Sheet

The balance sheet shows typical bank leverage, with debt-to-equity at ~1.70 in 2025 (improved vs. ~1.97 in 2023, but still meaningful). Equity is sizeable at A$6.67B against A$103.2B of assets, providing a buffer, but returns weakened materially with return on equity turning negative (-1.5%) in 2025 after mid-to-high single digit levels in prior years. Overall, leverage looks manageable in context, but the recent profitability decline reduces balance-sheet strength through a weaker return profile.

Cash Flow

Cash generation in the latest annual period improved significantly, with operating cash flow of A$1.70B and free cash flow of A$1.68B, a sharp rebound from large outflows in 2024. However, cash flow has been highly volatile across years (deeply negative in 2021 and 2024), and free cash flow growth is also very unstable (2025 shows a steep decline rate). Importantly, free cash flow nearly matched the net loss in 2025 (free cash flow to net income ~0.99), indicating cash flow resilience, but the multi-year swing risk remains a key drawback.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	6.83B	5.26B	1.86B	3.64B	1.99B	2.11B
Gross Profit	2.04B	1.91B	1.86B	3.64B	1.99B	2.11B
EBITDA	660.00M	726.10M	0.00	0.00	316.50M	327.80M
Net Income	-83.30M	-97.10M	545.00M	497.00M	488.10M	524.00M
Balance Sheet
Total Assets	101.30B	103.22B	98.19B	98.48B	95.24B	86.58B
Cash, Cash Equivalents and Short-Term Investments	2.73B	1.08B	1.89B	6.68B	3.16B	5.52B
Total Debt	9.47B	11.37B	11.06B	13.52B	13.39B	13.48B
Total Liabilities	94.66B	96.55B	91.15B	91.63B	88.53B	80.22B
Stockholders Equity	6.64B	6.67B	7.03B	6.85B	6.71B	6.35B
Cash Flow
Free Cash Flow	-3.96B	1.68B	-5.94B	496.40M	450.50M	-6.48B
Operating Cash Flow	-3.95B	1.70B	-7.59B	527.00M	465.00M	-6.46B
Investing Cash Flow	773.80M	111.50M	-52.10M	1.72B	-12.04B	2.33B
Financing Cash Flow	1.65B	-460.20M	-411.30M	2.53B	8.04B	10.03B

Bendigo & Adelaide Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BEN, the sentiment is Negative. The current price of 10.86 is below the 20-day moving average (MA) of 10.96, above the 50-day MA of 10.67, and below the 200-day MA of 11.55, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 15.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BEN.

Bendigo & Adelaide Bank 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%
NWL	64 Neutral	AU$6.33B	111.22	67.81%	1.45%	28.29%	39.39%
JDO	56 Neutral	AU$1.93B	18.31	5.31%	―	16.78%	22.86%
MYS	53 Neutral	AU$772.08M	16.17	5.92%	4.63%	26.01%	-17.55%
BBC	52 Neutral	AU$33.26M	24.14	1.06%	―	-7.19%	―
BEN	51 Neutral	AU$6.07B	-72.66	-1.23%	5.99%	5.39%	-117.83%
BOQ	47 Neutral	AU$4.61B	34.64	2.17%	5.77%	2.16%	-53.33%

Bendigo & Adelaide Bank Corporate Events

Bendigo and Adelaide Bank Sets Date for 1H26 Results and Investor Briefing

Bendigo and Adelaide Bank has scheduled the release of its half-year financial results for the period ended 31 December 2025 on 16 February 2026, with a briefing to be led by Chief Executive Officer and Managing Director Richard Fennell and Chief Financial Officer Andrew Morgan. The results will be presented via a publicly accessible webcast, with a replay available later the same day, underscoring the bank’s emphasis on transparency and engagement with investors and other stakeholders ahead of a key earnings milestone.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$10.00 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo and Adelaide Bank Seeks ASX Quotation for New Employee Scheme Shares

Bendigo and Adelaide Bank has applied for quotation on the ASX of 334 additional fully paid ordinary shares issued on 7 January 2026 under an employee incentive scheme. The modest size of the issuance suggests it is part of routine equity-based compensation rather than a capital-raising initiative, incrementally increasing the company’s listed share count while supporting staff remuneration and alignment with shareholder interests.

The most recent analyst rating on (AU:BEN) stock is a Buy with a A$11.32 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo and Adelaide Bank Reports Lapse of 38,606 Performance Rights

Bendigo and Adelaide Bank has notified the market that 38,606 performance rights (ASX code BENAAA) have lapsed as of 31 December 2025 because the conditions attached to those rights were not, or could no longer be, satisfied. The cessation of these securities reflects an adjustment to the bank’s issued capital structure, signalling that certain performance hurdles tied to executive or employee incentives were not met, which may modestly reduce potential future equity dilution for existing shareholders but does not alter the company’s ordinary share capital.

The most recent analyst rating on (AU:BEN) stock is a Buy with a A$11.32 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo and Adelaide Bank Updates Securities Trading Policy

Bendigo and Adelaide Bank has updated its Securities Trading Policy, in line with ASX Listing Rule 12.10, with the revised governance document taking effect from 1 January 2026 and scheduled for review in 2028. The update, approved by the bank’s board, underlines a continued focus on governance and oversight of securities trading by insiders, reinforcing compliance and risk management practices that are important to shareholders, regulators and other stakeholders.

The most recent analyst rating on (AU:BEN) stock is a Hold with a A$10.50 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo and Adelaide Bank Faces APRA Capital Charge and AUSTRAC Investigation

Bendigo and Adelaide Bank has been subjected to a $50 million operational risk capital charge by APRA, effective from January 2026, which will slightly reduce its CET1 ratio but remains above regulatory requirements. Additionally, AUSTRAC has launched an enforcement investigation into the bank’s AML/CTF deficiencies, prompting the organization to intensify its focus on risk management and commit to improving non-financial risk maturity, a move endorsed by its leadership.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$9.60 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo & Adelaide Bank Announces New Distribution for BENPH Security

Bendigo & Adelaide Bank Limited has announced a new distribution for its security BENPH, with a distribution amount of AUD 1.311 per security. The payment is scheduled for March 16, 2026, with an ex-date of March 2, 2026, and a record date of March 3, 2026. This announcement reflects the bank’s ongoing commitment to providing returns to its security holders, potentially impacting its market positioning by reinforcing investor confidence.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$9.60 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo & Adelaide Bank Announces New Dividend Distribution

Bendigo & Adelaide Bank Limited has announced a new dividend distribution for its security BENPI, with a distribution amount of AUD 1.1665. The dividend relates to a quarterly period ending on March 12, 2026, with an ex-date of February 27, 2026, and a payment date set for March 13, 2026. This announcement is significant for stakeholders as it reflects the bank’s ongoing commitment to providing returns to its investors, potentially enhancing its market positioning and investor confidence.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$9.60 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo & Adelaide Bank Director Increases Shareholding

Bendigo & Adelaide Bank Limited announced a change in the director’s interest notice, indicating that Director Vicki Anne Carter has increased her indirect shareholding in the company. The acquisition involved purchasing 4,933 ordinary shares at $10.13 each, bringing her total holdings to 38,849 shares. This transaction reflects a strategic move by the director, potentially signaling confidence in the company’s future performance and stability, which could have positive implications for stakeholders and market perception.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$9.60 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo & Adelaide Bank Announces Quotation of New Securities

Bendigo & Adelaide Bank Limited announced the quotation of 1,298 fully paid ordinary securities under the ASX code BEN. These securities are issued under an employee incentive scheme and are not subject to transfer restrictions, potentially impacting the company’s market presence and employee engagement strategies.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$9.60 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo & Adelaide Bank Honors Indigenous Custodians in Investor Update

Bendigo & Adelaide Bank has released an investor update acknowledging the Traditional Custodians of the lands where their operations and stakeholders are located. This gesture underscores the bank’s commitment to respecting Indigenous communities and fostering inclusivity within its corporate culture.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$10.50 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo and Adelaide Bank to Acquire RACQ Bank’s Retail Assets

Bendigo and Adelaide Bank announced its agreement to acquire RACQ Bank’s retail lending assets and deposits, subject to regulatory approvals. This acquisition, expected to complete in the first half of 2027, aligns with the bank’s strategy to enhance its deposit base and geographic diversity, particularly increasing its presence in Queensland. The transaction is anticipated to be financially beneficial, contributing to the bank’s return on equity and cash earnings per share. The integration will leverage Bendigo’s existing banking system, aiming for cost efficiency and improved shareholder returns.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$10.50 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Bendigo and Adelaide Bank to Overhaul Risk Management Systems Following Review

Bendigo and Adelaide Bank has identified significant deficiencies in its handling of money laundering and terrorism financing risks, following an independent review by Deloitte. The investigation revealed systemic issues in the bank’s risk management practices, including inadequate transaction monitoring and customer risk assessment. In response, the bank’s board is committed to enhancing its compliance systems and processes to meet legal obligations, and will engage with regulatory bodies to address these issues.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$10.00 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.

Moody’s Upgrades Bendigo & Adelaide Bank’s Credit Rating

Moody’s has upgraded Bendigo & Adelaide Bank’s long-term issuer credit rating from Baa1 to A3, reflecting the bank’s very strong asset quality, robust funding profile, and strong liquidity. This upgrade is expected to positively impact the bank’s market positioning and stakeholder confidence by enhancing its creditworthiness and stability.

The most recent analyst rating on (AU:BEN) stock is a Sell with a A$10.00 price target. To see the full list of analyst forecasts on Bendigo & Adelaide Bank stock, see the AU:BEN Stock Forecast page.