Is Bendigo Bank stock still a buy after a 13% surge this week?

Bendigo and Adelaide Bank stock is growing due to better financial performance stronger margins lower costs and improving business outlook

Bendigo and Adelaide Bank Limited (ASX: BEN) 

achieved cash earnings of $256.4 million and statutory net profit after tax of $230.6 million for the half year ended 31 December 2025. Compared to the previous six months its earnings went up slightly by 2.8%. But compared to the same time last year, earnings were down by 3.3%. The interim dividend was usual at 30 cents per share and remained unchanged. 

The result showed stable progress in its strategy. Growth in lower cost deposits supported margins while costs reduced during the second quarter. 
A decision to exit a legacy mortgage partner business affected loan growth during the period. The bank expects its home lending portfolio to grow again in the second half of the financial year.

Key Developments and Investment Focus (1H26):

During the half year, BEN achieved several milestones. The Bendigo Lending Platform was fully rolled out across branches and direct onboarding was launched through its mobile app. A partnership with Google was introduced to strengthen digital capability with a focus on AI and cyber risk. 

The bank also completed its core system simplification by migrating 180,000 Adelaide Bank accounts onto one platform. It announced an agreement to acquire RACQ Bank’s loan and deposit book with completion planned for the first half of 2027. 

Investment spending in this period focused on risk and compliance along with technology upgrades. Major areas included data centre consolidation, a new human resource system, transformation of the data platform, and continued development of digital banking services including BEN digital and Up.

Outlook: 

The bank noted that the Australian economy is showing positive momentum supported by a strong labour market and rising business investment. Growth has moved above 2%. Though, there are challenges such as weak productivity and higher core inflation. The February rate increase signals tighter policy ahead. 

Global uncertainty and trade risks remain present though Australia is supported by a trade surplus and benefits from technology progress. Customers are dealing with higher living costs but many remain financially stable. About 45% of mortgage holders are more than a year ahead on repayments while 88% maintain financial buffers. 

The bank stated its balance sheet is strong and prepared for future growth while continuing to focus on deposits, efficiency and long term expansion.

Partnerships and 3Q26 Update:

On 9 April 2026, the bank announced new strategic partnerships as part of the next stage of its productivity program. 

A seven year agreement with Infosys will improve technology services and provide access to software engineering and AI skills. A six year partnership with Genpact will enhance business operations and improve process efficiency. These steps aim to simplify operations and support innovation. 

The changes are expected to deliver annual cost benefits of $65 million to $75 million by FY28 with transition costs of $85 million to $95 million mainly in FY27. 

The third quarter update showed cash earnings of $137.9 million and statutory profit of $109.4 million. Net interest margin rose to 1.98%. Lending growth improved with gains in housing and business segments. Expenses declined due to lower staff numbers and fewer working days. Credit expenses were $2.1 million for the quarter.

(Source: Company Report)