Bendigo and Adelaide Bank Limited provided trading update and FY23 outlook

Bendigo and Adelaide Bank Limited (ASX: BEN) provided an update on its first five months of trading and outlook for the rest of FY2023:

• It has reported unaudited cash earnings year-to-date of approximately AU$245 million, an increase of 22% compared to the previous year’s performance.
• The company has increased its deposit balances by 8.9% over the previous 12 months and increased by 2.0% over the previous 5 months.
• It has a Return on equity year-to-date of 8.82%, which increased by 110 basis points compared to FY22.
• Common Equity Tier 1 capital ratio on 31 October 2022 was 9.98%, up 22 basis points as compared to 30 September 2022 and up 30 basis points as compared to 30 June 2022.
• In FY23, the company needs 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 to be in the range of 3.5% to 4.0%. NIM tailwinds are anticipated to continue into the 2HFY23, mainly replicating the strength of the company’s deposit-gathering network.

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