Bendigo and Adelaide Bank: Positive Trading Update Buoys Near-Term Earnings

Following a better-than-expected trading update from Bendigo and Adelaide Bank, we lift our fiscal 2024 forecast for cash earnings aftertax by 12% to AUD 558 million. This would equate to a decline of just 3% from fiscal 2023. For the 10 months ending April 30, 2024, Bendigo and Adelaide Bank’s cash earnings aftertax were approximately AUD 464 million, down 2.3% year on year. Despite competition for lending and deposits, net interest margin was resilient at 1.87% year to date, up from 1.83% at the end of December. Credit expenses also remained low during the period, which helped earnings.