Bendigo and Adelaide Bank (BEN) Investor Update summary

Strategic initiatives and business momentum

• Completed core banking system consolidation, reducing from eight to one system, enhancing migration capability and digital onboarding.

• Digital bank Up achieved first month of profitability, with 22% YoY customer growth, 35% deposit growth, and plans to broaden lending products.

• Refreshed Bendigo app improved digital onboarding, attracting new demographics and increasing daily account openings.

• Net Promoter Score remains strong at +28.4, with the Up brand at +44.3, reflecting high customer advocacy.

• Community grants reached $50.2 million in FY25, and climate targets aligned to 1.5°C have been set.

RACQ Bank acquisition

• Agreement to acquire RACQ Bank's $2.7bn loan and $2.5bn deposit book at book value, adding over 90,000 customers, with completion expected in 1H27.

• Transaction expected to be ROE and cash EPS accretive, with ROE up 35-40bps and cash EPS up ~4-5cps.

• Acquisition funded from excess capital, with CET1 impact of -35bps.

• Customer migration to products and core banking system will occur at completion.

• Increases Queensland exposure in residential lending portfolio from 15% to 18%.

Financial and operational performance

• Balance sheet remains strong with AUD 360m in excess capital and a 77% deposit funding ratio.

• Cost management initiatives include a 3.6% FTE reduction YTD, contractor numbers down 30%, and ongoing restructuring.

• Operating expenses trending lower in Q2 FY26, with investment spend aligned to guidance.

• Mortgage assessment times reduced from over 300 minutes to 110 minutes through new platforms and partnerships.

• Productivity gains expected from technology rationalization, partner consolidation, and automation, with further details to be provided in the next half.