CBA(US:CMWAY) Rask Media·2026-02-16 01:56Core Viewpoint - Bendigo and Adelaide Bank Ltd reported its FY26 half-year results, highlighting a mixed performance in residential and business lending, alongside a commitment to strategic initiatives and improvements in risk management capabilities [1][2][5]. Financial Performance - Residential lending applications improved, with December 2025 being the strongest month of the financial year, although total residential lending decreased by 0.1% to $65.1 billion [3][8]. - Business lending grew by 2.8%, but agribusiness lending saw a decline of 6.2% due to favorable seasonal conditions leading to significant loan paydowns [3]. - Customer deposits increased by 2.3% to $73.7 billion, while net interest margin improved by 4 basis points to 1.92% [8]. - Cash earnings declined by 3.3% to $256.4 million, while statutory earnings rose by 6.4% to $230.6 million [8]. Operational Highlights - Total operating expenses rose by 4.2% due to higher software and remediation costs, but second-quarter expenses were 6.4% lower than the first quarter [4]. - Gross impaired loans decreased by 3.1% to $125.6 million, with a slight increase in 90-day arrears for residential lending [5]. Strategic Initiatives - The bank is committed to investing in its 2030 strategic initiatives and enhancing its anti-money laundering and counter-terrorism financing (AML/CTF) capabilities, with an uplift program expected to cost between $70 million to $90 million over three years [5][6]. - The bank aims to achieve a return on equity (ROE) of above 10% by 2030 [7]. Market Context - The Australian economy shows positive signs with a strong labor market and increased business investment, although challenges remain due to rising living costs and lagging productivity [9]. - Despite solid profit performance, loan growth remains a challenge compared to competitors like Macquarie Group and Commonwealth Bank [10].