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Bendigo & Adelaide Bank
(Sydney:BEN)
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Rating:55Neutral
Price Target:
AU$10.50
â–¼(-3.23% Downside)
Action:Reiterated
Date:08/28/26
Overall score is driven primarily by middling financial performance with notable volatility in earnings and cash flows, plus weak technical momentum (below key moving averages with negative MACD). These are partially offset by reasonable valuation supported by a strong dividend yield, while the latest earnings call signals solid operational progress but substantial near-term remediation, cost, and credit/margin headwinds.
Positive Factors
Stronger, lower-cost deposit franchise
A growing share of lower-cost deposits can improve funding resilience and support net interest margins. Digital acquisition and stronger deposit mix also reduce reliance on more expensive wholesale funding over time.
Negative Factors
AML and non-financial risk remediation burden
Remediation requires substantial spending and management attention, while regulatory uncertainty can create further provisions or restrictions. These risks may suppress returns and divert resources from growth until control weaknesses are resolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger, lower-cost deposit franchise
A growing share of lower-cost deposits can improve funding resilience and support net interest margins. Digital acquisition and stronger deposit mix also reduce reliance on more expensive wholesale funding over time.
Read all positive factors
Bendigo & Adelaide Bank (BEN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$6.10B
Dividend Yield5.86%
Average Volume (3M)2.06M
Price to Earnings (P/E)15.9
Beta (1Y)1.28
Revenue Growth-5.79%
EPS GrowthN/A
CountryAU
Employees4,568
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.66
Shares Outstanding580,092,040
10 Day Avg. Volume1,819,607
30 Day Avg. Volume2,063,991
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.91
Price to Sales (P/S)3.39
P/FCF Ratio7.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$10.19Price Target Upside-6.04% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)0.79
Revenue Forecast (FY)AU$2.13B
Bendigo & Adelaide Bank Business Overview & Revenue Model
Company Description
Bendigo and Adelaide Bank Limited is an Australian financial institution delivering a comprehensive suite of banking and financial services to individual customers and small to medium-sized enterprises. The company's operations are divided into di...
How the Company Makes Money
Bendigo and Adelaide Bank primarily makes money through (1) net interest income: earning interest on loans and other interest-earning assets (such as home loans and business lending) and paying interest on deposits and other funding, with the marg...
Bendigo & Adelaide Bank Earnings Call Summary
Earnings Call Date:Aug 23, 2026
(Q4-2026)
| Next Earnings Date:Feb 15, 2027
Earnings Call Sentiment Neutral
The call balanced clear operational progress—modest earnings growth, margin and deposit-mix improvements, strong digital (Up) momentum, completed core consolidation and material strategic partnerships—against significant risk and cost headwinds: AML/CTF and non-financial risk remediation (with a $70m rectification provision and further AML investment planned), regulatory provisions that reduced CET1, elevated one‑off FY'27 notables ($100m–$123m pretax) that will dilute ROE, and expected margin/funding pressures and higher credit costs. Management is prioritizing risk uplift and productivity to protect sustainable growth, but near-term profitability and capital will be affected by remediation and integration costs.Positive Updates
Improved Cash Earnings and Income Growth
Cash earnings for FY'26 were $530m, up 3% year-on-year, driven by total income growth of 5.1% and expense growth contained to 4.2%.
Negative Updates
AML/CTF Deficiencies and Non-Financial Risk Rectification
Bank announced a Financial Crime Transformation Program and a rectification plan for non-financial risk (Board's #1 priority). An initial estimated provision of $70m for the rectification program was included in FY'26 results; AML/CTF uplift total investment expected $70m–$90m (with $8m spent in FY'26). Ongoing regulatory and law-enforcement processes (AUSTRAC) create material uncertainty.
Read all updates
Q4-2026 Updates
Positive
Negative
Improved Cash Earnings and Income Growth
Cash earnings for FY'26 were $530m, up 3% year-on-year, driven by total income growth of 5.1% and expense growth contained to 4.2%.
Read all positive updates
Company Guidance
Guidance highlights: for FY27 management expects business‑as‑usual (BAU) operating expenses to grow 4–5% (pre‑notables, excluding RACQ) — roughly 5–6% including RACQ’s $8–9m run‑rate — while total one‑off notables are guided at $100–123m pretax (partnership implementation $56–66m, RACQ migration $28–34m, staff‑equity methodology $16–23m), implying overall cost growth of roughly 9–11% on FY26; total investment spend is guided at $230–240m inclusive of notables (≈$120m expensed, ≈$60m capitalised, $50–60m of notables) with expensed investment pre‑notables expected flat YoY at ~$120m. If the RACQ transaction completes in Q2 FY27 it should add NII of $33–37m, incremental OpEx $8–9m, a 31bp CET1 impact and a 23–27bp ROE uplift (RACQ scale ≈$2.6bn loans / $2.3bn deposits); the Financial Crime uplift is budgeted $70–90m (with $8m spent in FY26) and a $70m initial non‑financial risk rectification provision was taken in FY26. Medium‑term BAU cost ambition remains no higher than inflation through the cycle (inflation assumed in the mid‑4% range), partnership benefits of $65–75m are expected to be realised in FY28, and management reiterates its 2030 ROE target of >10% (ROE >8% in FY26, ROTE >10%, H2 ROTE ~10.5%).Bendigo & Adelaide Bank Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
48
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.80B | 5.26B | 1.86B | 3.64B | 1.99B |
| Gross Profit | 1.79B | 1.91B | 1.86B | 3.64B | 1.99B |
| EBITDA | 530.20M | 726.10M | 909.00M | 827.60M | 316.50M |
| Net Income | 375.10M | -97.10M | 545.00M | 497.00M | 488.10M |
Balance Sheet | |||||
| Total Assets | 104.41B | 103.22B | 98.19B | 98.48B | 95.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 1.08B | 1.89B | 6.68B | 3.16B |
| Total Debt | 10.11B | 11.37B | 11.06B | 13.52B | 13.39B |
| Total Liabilities | 97.68B | 96.55B | 91.15B | 91.63B | 88.53B |
| Stockholders Equity | 6.73B | 6.67B | 7.03B | 6.85B | 6.71B |
Cash Flow | |||||
| Free Cash Flow | 872.80M | 1.68B | -5.94B | 496.40M | 450.50M |
| Operating Cash Flow | 902.20M | 1.70B | -7.59B | 527.00M | 465.00M |
| Investing Cash Flow | 56.90M | 111.50M | -52.10M | 1.72B | -12.04B |
| Financing Cash Flow | -501.30M | -460.20M | -411.30M | 2.53B | 8.04B |
Bendigo & Adelaide Bank Technical Analysis
Negative
10.85
Price Trends
10.79
Negative
10.70
Negative
10.58
Negative
Market Momentum
-0.11
Positive
41.50
Neutral
45.95
Neutral
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 10.85 is below the 20-day moving average (MA) of 10.99, above the 50-day MA of 10.79, and above the 200-day MA of 10.58, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 45.95 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | AU$20.38B | 19.38 | 10.06% | 3.58% | -2.94% | -31.48% | |
63 Neutral | AU$118.94B | 19.03 | 9.88% | 4.21% | -8.10% | -10.70% | |
55 Neutral | AU$6.10B | 15.94 | 5.63% | 5.70% | -5.79% | ― | |
54 Neutral | AU$115.56B | 16.43 | 9.77% | 4.15% | -3.87% | 1.20% | |
54 Neutral | AU$259.90B | 23.87 | 13.94% | 2.81% | 0.78% | 7.41% | |
45 Neutral | AU$4.21B | 42.05 | 1.66% | 6.28% | -4.72% | -67.75% |
* Financial Sector Average
AU:BEN
Bendigo & Adelaide Bank
10.46
-2.20
-17.41%
AU:BOQ
Bank of Queensland
6.35
-0.34
-5.14%
AU:NAB
National Australia Bank Limited
37.98
-3.08
-7.50%
AU:SUN
Suncorp Group
18.85
-1.53
-7.53%
AU:WBC
Westpac Banking
33.68
-3.45
-9.29%
AU:CBA
Commonwealth Bank of Australia
154.96
-10.30
-6.23%
Bendigo & Adelaide Bank Corporate Events
Bendigo and Adelaide Bank boosts Tier 2 capital with $300m subordinated note issue
Aug 27, 2026
Bendigo and Adelaide Bank has issued AUD 300 million in subordinated floating rate notes due 2036 under its AUD 12 billion Debt Instrument Programme, with the offer restricted to sophisticated and professional investors and not requiring a prospec...
Bendigo & Adelaide Bank Announces AUD 0.33 Interim Dividend and DRP Timetable
Aug 23, 2026
Bendigo Adelaide Bank has declared a six-month dividend of AUD 0.33 per ordinary fully paid share for the period ending 30 June 2026, reinforcing its capital return to shareholders. The dividend will trade ex-dividend on 1 September 2026, with a ...
Bendigo and Adelaide Bank Issues 2026 AGM Notice to Shareholders
Aug 23, 2026
Bendigo and Adelaide Bank has released its 2026 Notice of Annual General Meeting and Proxy Form, complying with ASX listing requirements and signalling the formal start of its annual shareholder meeting process. The documents outline the upcoming ...
Bendigo and Adelaide Bank to Release Escrowed Ferocia Acquisition Shares
Aug 23, 2026
Bendigo and Adelaide Bank will release 662,070 fully paid ordinary shares from voluntary escrow on 1 September 2026, following ASX Listing Rule 3.10A. These shares were originally issued as part of the consideration for its acquisition of fintech ...
Bendigo and Adelaide Bank Aligns APS 330 Disclosure With Updated Basel III Standards
Aug 23, 2026
Bendigo and Adelaide Bank has released its Basel III Pillar 3 prudential disclosures for the period ended 30 June 2026, in line with Australian Prudential Regulation Authority requirements. The reporting is prepared on an APRA Level 2 regulatory c...
Bendigo and Adelaide Bank Releases 2026 Corporate Governance Statement
Aug 23, 2026
Bendigo and Adelaide Bank has released its 2026 Corporate Governance Statement, outlining the governance framework under which the board oversees the bank’s operations. The document, together with the accompanying compliance appendix, is now...
Bendigo & Adelaide Bank Releases FY2026 Results Presentation with Acknowledgement of Country
Aug 23, 2026
Bendigo Adelaide Bank has released its results presentation for the full year ended 30 June 2026, scheduled on 24 August 2026. The document prominently features an Acknowledgement of Country, recognising Traditional Owners across Australia and pa...
Bendigo and Adelaide Bank lifts earnings as digital push, deposit mix and Queensland expansion drive growth
Aug 23, 2026
Bendigo and Adelaide Bank reported cash earnings of $530.2 million and statutory net profit after tax of $375.1 million for the year to 30 June 2026, with cash earnings up 3.0% and a fully franked final dividend of 33 cents per share. The result w...
Bendigo and Adelaide Bank releases 2026 results and sustainability report
Aug 23, 2026
Bendigo and Adelaide Bank has lodged its 2026 Appendix 4E preliminary final report with the ASX, outlining its full-year financial results for the period. The bank also published its 2026 Annual Financial Report and accompanying Sustainability Rep...
Bendigo Bank Accepts $8m APRA Penalty After Cyber Incident
Aug 10, 2026
Bendigo and Adelaide Bank has acknowledged civil proceedings initiated by APRA in the Federal Court over contraventions of the Banking Act between 2020 and 2023, and has agreed to a proposed $8 million penalty subject to court approval. The bank e...
Bendigo and Adelaide Bank Seeks Quotation for New Employee Scheme Shares
Aug 7, 2026
Bendigo and Adelaide Bank has applied for quotation on the ASX of 967 new fully paid ordinary shares issued under its employee incentive scheme. The small issuance, dated 4 August 2026, marginally increases the number of quoted BEN securities and ...
Bendigo and Adelaide Bank Sets Date for FY26 Full-Year Results Briefing
Jul 30, 2026
Bendigo and Adelaide Bank has scheduled the release of its full-year financial results for the period ended 30 June 2026 on 24 August 2026. The bank will host a results briefing via webcast that morning, led by Chief Executive Officer and Managing...
Bendigo and Adelaide Bank Reports Lapse of 37,791 Performance Rights
Jul 13, 2026
Bendigo and Adelaide Bank has notified the market that 37,791 performance rights, listed under the ASX code BENAAA, have lapsed after the conditions attached to those rights were not met or became incapable of being satisfied. The cessation of the...
Bendigo and Adelaide Bank Seeks ASX Quotation for New Employee Scheme Shares
Jul 13, 2026
Bendigo and Adelaide Bank has applied to the ASX for quotation of 1,487 fully paid ordinary shares under its code BEN. The new shares, issued on 6 July 2026 under an employee incentive scheme, will be quoted on the exchange, modestly increasing th...
Bendigo & Adelaide Bank Seeks ASX Quotation for Employee Scheme Shares
Jul 10, 2026
Bendigo Adelaide Bank has applied for quotation of 198 ordinary fully paid shares on the ASX, issued on June 30, 2026. These securities were previously granted under an employee incentive scheme and are now becoming transferable as restrictions o...
Bendigo and Adelaide Bank Issues New Employee Performance Rights
Jul 8, 2026
Bendigo and Adelaide Bank has notified the market of the issuance and transfer of a small tranche of unquoted performance rights under its employee incentive scheme. The securities, totaling 2,729 performance rights, were issued in mid-June 2026 a...
Bendigo and Adelaide Bank Announces Quarterly Distribution on Capital Note 3
Jun 16, 2026
Bendigo and Adelaide Bank has declared a quarterly distribution of AUD 1.4585 per security on its ASX-listed Capital Note 3 (BENPH), which pays a variable rate of BBSW plus a 3.80% margin. The distribution relates to the quarter ending 14 Septembe...
Bendigo and Adelaide Bank Sets September Distribution on BENPI Capital Notes
Jun 16, 2026
Bendigo and Adelaide Bank has declared a quarterly distribution on its BENPI capital notes, set at AUD 1.338 per security, tied to the 3‑month bank bill swap rate plus a 3.20% margin. The payment will be made on 14 September 2026 to holders ...
Bendigo and Adelaide Bank Seeks ASX Quotation for New Employee Shares
Jun 5, 2026
Bendigo and Adelaide Bank has applied to the Australian Securities Exchange for quotation of 1,893 new fully paid ordinary shares. These securities were issued on June 4, 2026 under an employee incentive scheme and will be quoted on the market, mo...
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.