Bendigo & Adelaide Bank Ltd. (AU:BEN)
ASX:BEN
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Bendigo & Adelaide Bank
(Sydney:BEN)
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Rating:57Neutral
Price Target:
AU$11.50
â–²(5.89% Upside)
Action:ReiteratedDate:04/10/26
The score is primarily held back by weak and volatile financial performance (recent net loss and negative ROE, despite improved operating cash flow). Valuation is a key support (low P/E and high dividend yield), while technicals are mildly constructive but not decisively bullish. Earnings-call signals are mixed: improving NIM, capital and productivity are positives, but AML/CTF remediation and regulatory uncertainty meaningfully raise risk.
Positive Factors
Improving funding mix & digital deposit momentum
A sustained shift toward lower-cost deposits and accelerating digital deposit sales materially improves structural funding stability and NIM resilience. Over the medium term this reduces wholesale funding reliance, lowers funding volatility, and supports margin durability as lending growth resumes.
Negative Factors
AML/CTF remediation and regulatory enforcement risk
A multi-year remediation program and an active enforcement probe create persistent costs, capital overlays and execution distraction. This undermines operating leverage, elevates compliance spend permanently, and raises uncertainty around fines or additional regulatory constraints that affect strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving funding mix & digital deposit momentum
A sustained shift toward lower-cost deposits and accelerating digital deposit sales materially improves structural funding stability and NIM resilience. Over the medium term this reduces wholesale funding reliance, lowers funding volatility, and supports margin durability as lending growth resumes.
Read all positive factors
Bendigo & Adelaide Bank (BEN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$6.54B
Dividend Yield5.99%
Average Volume (3M)2.06M
Price to Earnings (P/E)6.5
Beta (1Y)1.25
Revenue Growth5.39%
EPS Growth-117.83%
CountryAU
Employees4,812
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.45
Shares Outstanding580,091,860
10 Day Avg. Volume1,819,607
30 Day Avg. Volume2,063,991
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)1.07
Price to Sales (P/S)1.36
P/FCF Ratio4.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$10.64Price Target Upside-2.03% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)0.86
Revenue Forecast (FY)AU$2.02B
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....
How the Company Makes Money
BEN primarily makes money through net interest income earned on its banking book: it pays interest on customer deposits and wholesale funding, and earns interest on loans and other interest-earning assets, with the difference (net interest margin)...
Bendigo & Adelaide Bank Earnings Call Summary
Earnings Call Date:Feb 15, 2026
(Q2-2026)
| Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: management delivered record income, modest earnings growth, improved deposit mix, clear digital milestones (including early profitability at Up), and stronger capital and liquidity metrics. At the same time, material risks remain — most notably the self-identified AML/CTF remediation program with a $70–90 million estimated cost and a $50 million regulatory capital overlay, residential lending runoff from exiting legacy third-party channels, some cost inflation, and potential margin pressure as lending growth resumes. Execution and productivity gains are encouraging and provide offset, but regulatory uncertainty and funding/margin risks temper the outlook.Positive Updates
Record Income and Positive Earnings Growth
Total income exceeded $1.01 billion for the half (first time in bank history), up 3.7% on the prior half; cash earnings were $256.4 million, up 2.8% versus the prior half.
Negative Updates
AML/CTF Shortcomings and Regulatory Response
Identified deficiencies in AML/CTF risk management; Deloitte remediation roadmap estimates $70–90 million of uplift costs over up to 3 years (initial ~$15 million in H2 FY26); Prudential regulator applied a $50 million capital overlay and AUSTRAC has opened an enforcement investigation — potential fines/uncertainty remain unresolved.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Income and Positive Earnings Growth
Total income exceeded $1.01 billion for the half (first time in bank history), up 3.7% on the prior half; cash earnings were $256.4 million, up 2.8% versus the prior half.
Read all positive updates
Company Guidance
Guidance from the call pointed to stronger balance sheet growth in H2 with customer numbers expected to reach 3.0 million in Q4, a target of digital deposit sales of 45% by year‑end (currently 41.4%, up 7.4% H/H), and continued focus on lower‑cost deposits (up 3.6% to 53.8% of total deposits; EasySaver +7%, overall savings +5%, Up digital deposits +24% H/H, Bendigo digital +13%), while term deposits were down 4% and overall deposit growth was 1.1% H/H; management targets BAU costs in H2 no higher than H1 and BAU cost growth no higher than inflation (currently ~3–4%), after Q2 costs were ~6.4% lower than Q1, spot FTEs were down 5% PCP (contractors down 48% H/H) and a $9.6m productivity benefit was realized. Financially the bank expects mortgage growth around system by end H2, flagged NIM sensitivity of ~1.5–2 bps per 25 bp cash rate move (NIM was 192 bps, +4 bps H/H), H1 cash earnings $256.4m (+2.8% H/H), total income $1.01bn (+3.7% H/H), CET1 11.37% (+37 bps H/H; board target >10%), interim dividend $0.30 fully franked (67% payout, ~70% underwritten retaining ~31 bps ≈ $120m CET1), LCR ~135%, household deposit‑to‑loan 77% (9 ppt above industry), and an AML/CTF remediation estimate of $70–90m over up to 3 years with ~$15m expected in H2 FY26 (to be funded within the existing FY26 investment slate).Bendigo & Adelaide Bank Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
53
Neutral
Cash Flow
48
Neutral
| 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
Positive
10.86
Price Trends
10.58
Positive
10.47
Positive
11.34
Positive
Market Momentum
0.21
Negative
68.81
Neutral
82.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BEN, the sentiment is Positive. The current price of 10.86 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 10.58, and below the 200-day MA of 11.34, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 82.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BEN.
Bendigo & Adelaide Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$17.67B | 18.10 | 9.55% | 26.88% | -0.54% | 26.37% | |
70 Outperform | AU$306.27B | 12.51 | 13.27% | 3.00% | 6.39% | 7.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | AU$145.48B | 9.26 | 9.55% | 3.90% | 1.57% | 0.13% | |
58 Neutral | AU$137.50B | 19.98 | 8.08% | 4.00% | -4.56% | -1.63% | |
57 Neutral | AU$6.54B | 6.45 | -1.25% | 5.99% | 5.39% | -117.83% | |
47 Neutral | AU$4.89B | -30.45 | 2.22% | 5.77% | 2.16% | -53.33% |
* Financial Sector Average
AU:BEN
Bendigo & Adelaide Bank
11.35
1.42
14.29%
AU:BOQ
Bank of Queensland
7.40
0.89
13.74%
AU:NAB
National Australia Bank Limited
44.69
12.02
36.79%
AU:SUN
Suncorp Group
16.33
-2.39
-12.76%
AU:WBC
Westpac Banking
41.48
11.59
38.78%
AU:CBA
Commonwealth Bank of Australia
183.52
28.69
18.53%
Bendigo & Adelaide Bank Corporate Events
Bendigo and Adelaide Bank Strikes Tech Partnerships as Earnings and Lending Improve
Apr 8, 2026
Bendigo and Adelaide Bank has launched the second phase of its Productivity Program, unveiling multi‑year strategic partnerships with Infosys and Genpact to streamline technology and business operations. The Infosys deal aims to bolster IT s...
Bendigo and Adelaide Bank Reports Lapse of 57,544 Performance Rights
Apr 7, 2026
Bendigo and Adelaide Bank has notified the market of the lapse of 57,544 performance rights, which have ceased because the conditions attached to those rights were not met or became incapable of being satisfied as of 31 March 2026. The cessation o...
Bendigo and Adelaide Bank Seeks ASX Quotation for 11.8 Million New Shares
Mar 30, 2026
Bendigo and Adelaide Bank Limited has applied for quotation on the ASX of 11,799,036 new fully paid ordinary shares under its dividend or distribution plan, with an issue date of March 31, 2026. The additional shares will expand the bank’s l...
Bendigo and Adelaide Bank Updates Interim Dividend Details
Mar 25, 2026
Bendigo and Adelaide Bank has updated its previously announced interim dividend details for its ordinary fully paid shares. The dividend relates to the six‑month period ending 31 December 2025, with an ex‑dividend date of 20 February 2...
Bendigo and Adelaide Bank Sets June Quarterly Distribution on BENPH Capital Notes
Mar 16, 2026
Bendigo and Adelaide Bank has announced a new quarterly distribution on its BENPH Capital Note 3, a perpetual, non-cumulative, floating-rate security tied to BBSW plus a margin. The bank will pay a cash distribution of AUD 1.4069 per note for the ...
Bendigo and Adelaide Bank Sets June Distribution on BENPI Capital Notes
Mar 13, 2026
Bendigo and Adelaide Bank has announced a new quarterly distribution for its BENPI Capital Note 3, a perpetual, non-cumulative, floating-rate security paying BBSW plus a 3.20% margin. The bank set a cash distribution of AUD 1.33 per note for the q...
Bendigo and Adelaide Bank Seeks ASX Quotation for New Employee Scheme Shares
Mar 5, 2026
Bendigo and Adelaide Bank has applied for quotation on the ASX of 157 new fully paid ordinary shares issued on 5 March 2026. The small parcel of shares was issued under an employee incentive scheme and will be quoted as ordinary securities, signal...
Bendigo and Adelaide Bank Sets Date for 1H26 Results and Investor Briefing
Jan 30, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.