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 efficiency and migration capabilities.

• Launched new digital onboarding and lending platforms, driving improved customer experience and deposit inflows.

• Up, the digital bank, achieved first month of profitability ahead of schedule, with strong customer and deposit growth, and 22% YoY customer growth and 35% deposit growth.

• Focus on digital innovation, operational efficiency, and deepening customer relationships to drive growth and futureproof risk management.

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

RACQ Bank acquisition

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

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

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

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

• Integration to be supported by simplification to one core banking system by end of 2025, minimising incremental costs.

Financial performance and cost management

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

• FTE reduced by 3.6% year-to-date, with further restructuring and contractor reductions supporting cost control.

• Business-as-usual cost growth targeted at no higher than inflation, with specific focus on operational excellence, partnerships, AI, and property rationalization.

• Productivity initiatives include a 35% reduction in operations/contact center resources and a 30% reduction in corporate property rent over three years.

• Investment spend aligns with FY26 guidance; operational excellence and technology partnerships drive efficiency.