Bendigo and Adelaide Bank reports $112.7 million cash earnings as deposits rise 4.8%

Bendigo and Adelaide Bank reported unaudited cash earnings of $112.7 million for the first quarter of fiscal 2027, up 18.5% from the 2H26 quarterly average, as customer deposits reached $74.3 billion. The ASX-listed regional bank disclosed the figures in a quarterly update covered by EIN Presswire.

Bendigo and Adelaide Bank's Deposit Growth and Lending Split

Customer deposits rose 4.8% annualised, with term deposits climbing 13.3% annualised. Lower-cost deposits contracted and now make up just over half of all deposits. Lending balances fell 3.1% annualised, as residential loans declined 0.8% and business lending excluding Portfolio Funding rose 3.4% annualised.

Statutory net profit after tax was $66.0 million, down 8.6% on the prior quarter. The net interest margin was 1.94%, down 6 basis points from 4Q26, and operating expenses fell 5.8% on the 2H26 quarterly average. Credit expenses were $6.8 million, reflecting small increases in business portfolio provisions.

Bendigo and Adelaide Bank updated its financial reporting disclosure to present on a cash basis with notable items included, bringing it in line with peers. Items previously reported as non-cash, including strategic partnership costs and one-off regulatory remediation, are now classified as notable items.

Managing Director and CEO Richard Fennell said: "Our balance sheet is strong and remains well positioned for future growth while addressing these regulatory matters. We are also progressing the building of digital onboarding capability for our Business & Agribusiness sole trader customers, which we expect to release in 2Q27."

Bendigo and Adelaide Bank's Technology and Digital Records

According to akta.pro company records, Bendigo and Adelaide Bank signed a seven-year IT outsourcing deal with Infosys and a six-year deal with Genpact in April 2026 as part of a technology operations restructuring, targeting A$65 million to A$75 million of annual savings by FY28 at A$85 million to A$95 million of upfront transition cost. The same records show a May 2026 product launch of a virtual banking team to extend digital servicing capacity alongside the Up app and a fully digital home loan application process built with Tiimely.

Regulatory Penalties and Prior Results

In August 2026, the Australian Prudential Regulation Authority ordered Bendigo and Adelaide Bank to spend $70 million over three years to fix significant deficiencies in its non-financial risk management framework, The Australian reported. APRA also imposed licence conditions on the bank over pervasive weaknesses in that framework, according to Fxnewsgroup. The bank reported preliminary full-year cash profit of A$530.2 million, exceeding the estimated A$516 million, AInvest reported.

Bendigo and Adelaide Bank's Digital Onboarding Release

Bendigo and Adelaide Bank plans to release digital onboarding capability for Business & Agribusiness sole trader customers in 2Q27, Fennell said. The bank said it is keeping a close eye on loan quality and cost-of-living pressures for customers.