Skip to main content
Bendigo and Adelaide Bank logo.

Bendigo and Adelaide Bank trading update

13 December 2022 |Announcements

Bendigo and Adelaide Bank Limited (ASX: BEN) provides an update on its first five months of trading and outlook for the remainder of Financial Year 2023 (FY23).

Trading Update (unaudited actual financial results for the five months ending 30 November 2022)

  • Unaudited cash earnings (after tax)1 year-to-date (YTD) of approximately $245m, up 22% on prior corresponding period (PCP).
  • Lending balances (spot) increased 5.2% over the last 12 months2 and decreased 0.7% over the last five months3.
    • Residential lending increased 7.5% over the last 12 months2 and decreased 0.2% over the last five months3, reflecting slowing system growth and a focus on margin management since 30 June 2022.
    • Business lending (including Agribusiness) decreased 3.0% over the last 12 months2 and decreased 3.0% over the last five months3, reflecting an increasingly competitive environment and a heightened focus on margin management across both portfolios.
  • Deposit balances (spot) increased 8.9% over the last 12 months2 and increased 2.0% over the last five months3.
  • Net Interest Margin (NIM) post revenue share arrangements YTD of 1.85% with an exit NIM post revenue share arrangements of 2.01%. YTD NIM pre revenue share arrangements of 2.30%.
  • Credit expenses positively contributed with arrears remaining at low levels across all portfolios4. Greater than 90 days’ residential arrears for the month of November 2022 of 41 basis points (bps) were down 8bps as compared to 30 June 2022.
  • Common Equity Tier 1 capital (CET1) ratio at 31 October 2022 was 9.98%, up 22bps as compared to 30 September 2022 and up 30bps as compared to 30 June 2022.
  • Return on equity (cash) YTD of 8.82%, up 110bps as compared to financial year ending 30 June 2022 (FY22).

Outlook for FY23

  • Continued careful management of volume growth and margins given the competitive environment in both lending and deposits.
  • Expected further interest rate rises in FY23 to a terminal cash rate of between 3.5% and 4.0%. NIM tailwinds expected to continue into the second half of FY23, in particular reflecting the strength of BEN’s deposit gathering network.
  • Operating expenses expected to increase modestly on FY22 levels, reflecting higher non-lending losses and a higher mix of investment spend being expensed.

“At our full year results in August, we outlined our intent to sharpen our focus and concentrate our efforts on better returns, and to date in the first half of FY23 we have delivered strong growth in cash earnings and an improved return on equity. Our NIM has continued to rise as we carefully manage our volume growth and margins, while continuing to prudently manage costs in an inflationary environment. We remain committed to our strategy and vision, and we are united in our purpose of feeding into the prosperity of the community and not off it” said Marnie Baker, CEO and Managing Director of Bendigo and Adelaide Bank.

1 Refer to slide 14 of Investor Presentation for the full year results for the year ended 30 June 2022 for basis of calculation of cash earnings (after tax)
2 Balance at 30 November 2022 as compared to balance as at 30 November 2021
3 Balance at 30 November 2022 as compared to balance as at 30 June 2022
4 Based on the economic outlook scenario adopted for the full year results as at 30 June 2022

Approved for release by the: Bendigo and Adelaide Bank Board of Directors

About Bendigo and Adelaide Bank Limited
Bendigo and Adelaide Bank is Australia’s better big bank, with more than 7,000 staff helping our over 2.2 million customers to achieve their financial goals. Bendigo and Adelaide Bank’s vision is to be Australia’s bank of choice, by feeding into the prosperity of customers and their communities.


The material in this release is intended to be general background information about the Group’s activities current at the date of this release, 13 December 2022. All amounts in this release are unaudited.
It is information in a summary form and is therefore not necessarily complete. It is not intended to be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.
This release contains statements that are, or may be deemed to be, “forward-looking statements” with respect to the financial condition, operations and business of the Group and certain plans and objectives of the management of the Group. Such forward looking statements may be identified by the use of forward terminology, including the words “anticipate”, “believe”, “expect”, “continue”, “project”, “outlook”, “forecast”, “estimate”, “guidance”, “risk”, “likely”, “broadly”, “intend”, “should”, “could”, “may”, “will”, “target”, “plan” or, in each case, their negative or other variations or other similar expressions, or by discussions of strategy, plans, objectives, targets, goals, future events, intent or expectations. Indications of, and guidance on, future earnings and financial position, distributions and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group, its officers, employees, agents and advisors, which may cause actual results, conditions and circumstances to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.
You are cautioned not to place undue reliance on forward-looking statements. There are a number of other factors that could cause actual results to differ materially from those projected in such statements, including, without limitation, a significant change in the Group’s financial performance or operating environment, a material change to law or regulation or changes to regulatory policy or interpretation, and risks and uncertainties associated with the Australian and global economic and market uncertainties, the conflict in Ukraine and related geo-political uncertainty and the ongoing impacts of the COVID-19 pandemic.
To the maximum extent permitted by law, the Group disclaims responsibility for the accuracy or completeness of any forward-looking statements, whether as a result of new information, future events or results or otherwise. Except as required by law, the Group does not assume any obligation to update any of the forward-looking statements contained in this release, which only speak as of the date of this release.

Bendigo and Adelaide Bank acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of this nation and the Traditional Custodians of the land where we live, learn and work. We pay our respects to Elders past and present as it is their knowledge and experience that holds the key to the success of future generations.

Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Information on this page can change without notice to you.
© Copyright 2024 Bendigo and Adelaide Bank