BENDIGO & ADELAIDE BANK LIMITED (BEN)
Share Price Analysis and Chart

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25/08/2026

3

Neutral

$10.50

2.64%

On further inspection the target is lowered to $10.50 from $11.30 and EPS forecasts are lowered by -13% for FY27 and -9% for FY28.

The bank's 2H26 result improved operationally, with cash NPAT up 6.8% h/h, 4Q NIM reaching 2.0%, non-interest income up 10.7% q/q and lending growth returning.

UBS believes higher remediation and investment costs, emerging mortgage margin pressure and the Austrac regulatory overhang push the earnings recovery further out, despite continued strength in business and agribusiness lending.

Neutral rated.

First Take: UBS retains Neutral and an $11.30 target after FY26 cash profit met its forecast and marginally exceeded consensus.

Second-half margins improved and costs declined, but management expects mortgage and term-deposit competition to pressure margins during the first half of FY27.

Cost growth of 4%-5%, remediation spending and the possibility of an AUSTRAC penalty remain important earnings and valuation headwinds.

FORECAST
UBS forecasts a full year FY27 dividend of 63.00 cents and EPS of 70.00 cents.
UBS forecasts a full year FY28 dividend of 63.00 cents and EPS of 78.00 cents.

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25/08/2026

2

Overweight

$11.00

7.53%

Jarden maintains its Overweight recommendation for Bendigo & Adelaide Bank with an unchanged target price of $11.00 following a second-half financial result featuring cash net profit after tax of $274m, which beat consensus expectations of $261m by 5%.

Net interest income increased 2% half-on-half as net interest margin improved 6bps to 1.98%, driven by deposit mix improvements, term deposit repricing, and higher earnings from replacement capital.

Credit quality remained sound despite a slight increase in bad and doubtful debts to 4bps of gross loans and advances, while capital was reported with a common equity tier 1 ratio of 11.3%.

The board declared a steady dividend per share of 33.0c for the half.

The analyst notes that while underlying business trends are robust, an outstanding regulatory matter involving AUSTRAC remains a risk, though the bank is sufficiently capitalised to absorb potential penalties.