Q4 2026 BNK Financial Group Inc Earnings Call

August 27, 2026

Speaker #3: FY26 Financial Results Presentation. My name is Matt Vaughan. I'm the Head of Investor Relations at BNK, and today I'm joined by our CEO, Steve Kinsella.

Matt Vaughan: FY26 financial results presentation. My name is Matt Vaughan. I am the Head of Investor Relations at BNK. Today I am joined by our CEO, Steve Kinsella, and our CFO, Judith Newman. Today's presentation will commence with an overview from Steve, followed by Judith presenting BNK's results in detail, and then followed again by Steve providing an update on BNK's strategy and outlook for FY27. At the conclusion of this, we will then hold a short Q&A session at the end. Participants can submit questions via the Zoom interface at any time during the webinar. We will then collate all the questions, and any questions will then be answered in the session, the Q&A session at the end. Just a quick note on the disclaimer for this presentation.

Matt Vaughan: Hello, and welcome to BNKFY 2026 financial results presentation. My name is Matt Vaughan. I am the Head of Investor Relations at BNK. Today I am joined by our CEO, Steve Kinsella, and our CFO, Judith Newman. Today's presentation will commence with an overview from Steve, followed by Judith presenting BNK's results in detail, and then followed again by Steve providing an update on BNK's strategy and outlook for FY 2027. At the conclusion of this, we will then hold a short Q&A session at the end. Participants can submit questions via the Zoom interface at any time during the webinar. We will then collate all the questions, and any questions will then be answered in the session, the Q&A session at the end. Just a quick note on the disclaimer for this presentation.

Speaker #3: And our CFO, Judith Newman.

Speaker #4: Today's session.

Speaker #3: Today's presentation will commence with an overview from Steve, followed by Judith presenting BNK's results in detail, and then followed again by Steve providing an update on BNK's strategy and outlook for FY27.

Speaker #3: At the conclusion of this, we will then hold a short Q&A session at the end, and participants can submit questions via the Zoom interface at any time during the webinar.

Speaker #3: We'll then collate all the questions, and any questions will then be answered in the Q&A session at the end. Just a quick note on the disclaimer for this presentation: we won't go into it in detail, but we do encourage you to download the presentation from the ASX website or from the BNK website, and review the disclaimer at your convenience.

Matt Vaughan: We will not go into it in detail, but we do encourage you to download the presentation from the ASX website or from the BNK website and review the disclaimer at your convenience. I will now hand over to Steve for the overview for the presentation. Thank you, Steve.

Speaker #3: I'll now hand over to Steve for the overview of the presentation. Thank you, Steve.

Speaker #5: Thank you, Matt, and good morning, everyone. I'm pleased to take you through the full-year FY26 results, which show a continuation of our progress to sustainably improve the business on several fronts.

Steve Kinsella: Thank you, Matt, and good morning, everyone. I am pleased to take you through the full year FY26 results, which show a continuation of our progress to sustainably improve the business on several fronts. For FY26 key outcomes, our underlying NPAT was AUD 1 million. This is down on FY25 and represents the absence of any portfolio transactions during the year, which by their nature have a variable impact on results within any period. An increase in investment in our people and a more normalized impairment expense compared to the prior year, which was a credit, following the reduction of the balance sheet in FY25. Statutory NPAT was a loss of AUD 3.7 million, as we wrote off the remaining goodwill of AUD 3.5 million, which was pre-foreshadowed in a previous release. This has no impact on our regulatory capital, but enables a cleaner balance sheet going forward.

Steve Kinsella: Thank you, Matt, and good morning, everyone. I am pleased to take you through the full year FY 2026 results, which show a continuation of our progress to sustainably improve the business on several fronts. For FY 2026 key outcomes, our underlying NPAT was AUD 1 million. This is down on FY 2025 and represents the absence of any portfolio transactions during the year, which by their nature have a variable impact on results within any period. An increase in investment in our people and a more normalized impairment expense compared to the prior year, which was a credit, following the reduction of the balance sheet in FY 2025. Statutory NPAT was a loss of AUD 3.7 million, as we wrote off the remaining goodwill of AUD 3.5 million, which was pre-foreshadowed in a previous release. This has no impact on our regulatory capital, but enables a cleaner balance sheet going forward.

Speaker #5: For FY26 key outcomes, our underlying NPAT was $1 million. This is down on FY25 and represents the absence of any portfolio transactions during the year, which by their nature have a variable impact on results within any period.

Speaker #5: An increase in investment in our people, and a more normalized impairment expense compared to the prior year—which was a credit—following the reduction of the balance sheet in FY25.

Speaker #5: Statutory NPAT was a loss of $3.7 million, as we wrote off the remaining goodwill of $3.5 million, which was pretty well foreshadowed in a previous release.

Speaker #5: This has no impact on our regulatory capital, but enables a cleaner balance sheet going forward. The usual adjustments for the legacy mortgage management book and core banking upgrade are also reflected in the statutory result, but excluded from our underlying result, consistent with prior periods.

Steve Kinsella: The usual adjustments for the legacy mortgage management book and core banking upgrade are also reflected in the statutory result, but excluded from our underlying result consistent with prior periods. Pleasingly, Net Interest Income rose 10% on FY25 to AUD 24 million, supported by a continued asset mix optimization and focused cost of funding management. This then reflected in our net interest margin, which increased 44 basis points on FY25 to 1.96%. The commercial loan book saw healthy growth to AUD 247 million. Overall net income rose 3% on the prior corresponding period, which is also a good result given the absence of any portfolio transactions. FY26 also saw our initial investments into senior secured lending and expectations this portfolio will continue to grow, generating healthy returns. Our capital ratio remains strong at 24.6%, enabling further balance sheet growth over FY27. Turning to the strategic highlights.

Steve Kinsella: The usual adjustments for the legacy mortgage management book and core banking upgrade are also reflected in the statutory result, but excluded from our underlying result consistent with prior periods. Pleasingly, Net Interest Income rose 10% on FY 2025 to AUD 24 million, supported by a continued asset mix optimization and focused cost of funding management. This then reflected in our net interest margin, which increased 44 basis points on FY 2025 to 1.96%. The commercial loan book saw healthy growth to AUD 247 million. Overall net income rose 3% on the prior corresponding period, which is also a good result given the absence of any portfolio transactions. FY 2026 also saw our initial investments into senior secured lending and expectations this portfolio will continue to grow, generating healthy returns. Our capital ratio remains strong at 24.6%, enabling further balance sheet growth over FY 2027. Turning to the strategic highlights.

Speaker #5: Pleasingly, net interest income rose 10% in FY25 to $24 million, supported by continued asset mix optimization and focused cost of funding management. This was then reflected in our net interest margin, which increased 44 basis points in FY25 to 1.96%.

Speaker #5: The commercial loan book saw healthy growth to $247 million. Overall net income rose 3% on the prior corresponding period, which is also a good result given the absence of any portfolio transactions.

Speaker #5: FY26 also saw our initial investments into senior secured lending, and expectations are that this portfolio will continue to grow, generating healthy returns. Our capital ratio remained strong at 24.6%, enabling further balance sheet growth over FY27.

Speaker #5: Turning to the strategic highlights, we continue to refine and rebalance the portfolio and saw healthy growth in our fully secured commercial loan book. Investment in the senior secured portfolio also commenced, and throughout the year we've invested $60 million, with $20 million repaid and a year-end balance of $40 million.

Steve Kinsella: We continued to refine and rebalance the portfolio and saw healthy growth in our fully secured commercial loan book. Investment in the senior secured portfolio also commenced, and through the year, we have invested AUD 60 million, with AUD 20 million repaid and a year-end balance of AUD 40 million. We do expect continued and cautious growth in this area over FY27 in transactions that are NIM and return on capital accretive. Net Interest Income and overall income both grew over the year. Following the receipt of our investment grade rating from Standard & Poor's, we were able to launch an NCD program to further diversify funding sources. This program is now up and running and meeting our expectations. We are conscious that many households and businesses are feeling pressures from the higher rate and inflationary environment. Nonetheless, our arrears remain well within tolerances through active early engagement with customers.

Steve Kinsella: We continued to refine and rebalance the portfolio and saw healthy growth in our fully secured commercial loan book. Investment in the senior secured portfolio also commenced, and through the year, we have invested AUD 60 million, with AUD 20 million repaid and a year-end balance of AUD 40 million. We do expect continued and cautious growth in this area over FY 2027 in transactions that are NIM and return on capital accretive. Net Interest Income and overall income both grew over the year. Following the receipt of our investment grade rating from Standard & Poor's, we were able to launch an NCD program to further diversify funding sources. This program is now up and running and meeting our expectations. We are conscious that many households and businesses are feeling pressures from the higher rate and inflationary environment. Nonetheless, our arrears remain well within tolerances through active early engagement with customers.

Speaker #5: We do expect continued and cautious growth in this area over FY27, in transactions that are nimble and return on capital accretive. Net interest income and overall income both grew over the year.

Speaker #5: Following the receipt of our investment-grade rating from Standard & Poor's, we were able to launch an NCD program to further diversify funding sources. This program is now up and running, and meeting our expectations.

Speaker #5: We are conscious that many households and businesses are feeling pressure from the higher rate and inflationary environment. Nonetheless, our arrears remain well within tolerances through active, early engagement with customers.

Speaker #5: Investment continues in the technology platform, and we are nearing completion of the initial phase of the upgrade to our core banking infrastructure. Expense growth largely reflected investment in our people and capability, as well as some smaller technology uplifts, such as new telephony.

Steve Kinsella: Investment continues in the technology platform, and we are nearing completion of the initial phase of the upgrade to our core banking infrastructure. Expense growth largely affected an investment in our people and capability, as well as some smaller technology uplifts such as new telephony. This slide brings together the key balance sheet and margins that underpin our earnings profile. The loan book increased by just over AUD 90 million year on year, driven by commercial growth, the start of the senior secured investments, and a more targeted approach to residential lending, with some net reduction in the latter. This combination led to stronger risk-adjusted returns. For deposits, the funding base remains stable and is supported by a considered approach to pricing and mix in an ongoing competitive environment. Term deposits have grown as a proportion of customers seek maximized returns in the high-rate environment.

Steve Kinsella: Investment continues in the technology platform, and we are nearing completion of the initial phase of the upgrade to our core banking infrastructure. Expense growth largely affected an investment in our people and capability, as well as some smaller technology uplifts such as new telephony. This slide brings together the key balance sheet and margins that underpin our earnings profile. The loan book increased by just over AUD 90 million year-on-year, driven by commercial growth, the start of the senior secured investments, and a more targeted approach to residential lending, with some net reduction in the latter. This combination led to stronger risk-adjusted returns. For deposits, the funding base remains stable and is supported by a considered approach to pricing and mix in an ongoing competitive environment. Term deposits have grown as a proportion of customers seek maximized returns in the high-rate environment.

Speaker #5: This slide brings together the key balance sheet and margins that underpin our earnings profile. The loan book increased by just over $90 million year-on-year, driven by commercial growth, the start of the senior secured investments, and a more targeted approach to residential lending with some net reduction in the latter.

Speaker #5: This combination led to stronger risk-adjusted returns. For deposits, the funding base remains stable and is supported by a considered approach to pricing and mix in an ongoing competitive environment.

Speaker #5: Term deposits have grown as a proportion, as customers seek maximized returns in the high-rate environment. The combination of the loan book composition and our funding approach enabled a structural NIM increase from 1.52% to 1.96% over the previous corresponding period.

Steve Kinsella: The combination of the loan book composition and our funding approach enabled a structural NIM increase from 1.52% to 1.96% over the previous corresponding period. If we go back to FY24, we can see the NIM was an unsustainable 1.06%. Whilst further growth in NIM gets ever harder, we are now at more sustainable levels to underpin future earnings. Our portfolio mix continues to evolve in line with our strategic focus. Fully secured commercial lending now represents approximately 25% of the book and is a key driver of the higher return mix previously outlined. Senior secured investments broaden our asset mix and provide healthy risk-adjusted returns. These are warehouse arrangements with tailored facilities to establish non-bank financial institutions, where demand for appropriately structured funding remains strong and often underserved by traditional providers.

Speaker #5: If we go back to FY24, we can see the NIM was an unsustainable 1.06%. While further growth in NIM gets ever harder, we are now at more sustainable levels to underpin future earnings.

Speaker #5: Our portfolio mix continues to evolve in line with our strategic focus. Fully secured commercial lending now represents approximately 25% of the book, and is a key driver of the higher return mix previously outlined.

Speaker #5: Senior secured investments broaden our asset mix and provide healthy risk-adjusted returns. These are warehouse arrangements with tailored facilities to establish non-bank financial institutions, where demand for appropriately structured funding remains strong and is often underserved by traditional providers.

Speaker #5: As mentioned, growth in this area will continue over FY27 and will typically be in aggregate balance. Residential remains selective, as we continue to maintain tight credit selection, with an overall reduction in the book during FY26.

Steve Kinsella: As mentioned, growth in this area will continue over FY27 and will typically be in small step changes to the aggregate balance. Residential remains selective as we continue to maintain tight credit selection with an overall reduction in the book during FY26. Our approach is to prioritize value-accretive lending rather than pursuing high growth in low margin assets. The mix continues to shift toward higher return on capital segments that also diversifies earnings without compromising our risk settings. Looking at the portfolio repayment profile, this remains relatively stable. Principal and interest repayments remain at over 80% of the residential book, notwithstanding an increased proportion in interest only. As the book has grown in commercial, this is at approximately 75% principal and interest, reflecting the higher quality, longer-dated, property-secured business being written, contributing to a more predictable and stable risk profile over time.

Steve Kinsella: As mentioned, growth in this area will continue over FY 2027 and will typically be in small step changes to the aggregate balance. Residential remains selective as we continue to maintain tight credit selection with an overall reduction in the book during FY 2026. Our approach is to prioritize value-accretive lending rather than pursuing high growth in low margin assets. The mix continues to shift toward higher return on capital segments that also diversifies earnings without compromising our risk settings. Looking at the portfolio repayment profile, this remains relatively stable. Principal and interest repayments remain at over 80% of the residential book, notwithstanding an increased proportion in interest only. As the book has grown in commercial, this is at approximately 75% principal and interest, reflecting the higher quality, longer-dated, property-secured business being written, contributing to a more predictable and stable risk profile over time.

Speaker #5: Our approach is to prioritize value-accretive lending, rather than pursuing high growth in low-margin assets. The mix continues to shift toward higher return-on-capital segments, which also diversify earnings without compromising our risk settings.

Speaker #5: Looking at the portfolio repayment profile, this remains relatively stable. Principal and interest repayments remain at over 80% of the residential book, notwithstanding an increased proportion in interest-only.

Speaker #5: As the book has grown in commercial, this is at approximately 75% principal and interest, reflecting the higher quality, longer-dated, property-secured business being written. This contributes to a more predictable and stable risk profile over time.

Speaker #5: The residential portfolio mix has remained consistent year on year, notwithstanding the aggregate book size has reduced. Owner-occupied loans continue to make up the majority of the book, which supports portfolio resilience and aligns with our broader risk management strategy.

Steve Kinsella: The residential portfolio mix has remained consistent year on year, notwithstanding the aggregate book size has reduced. Owner-occupied loans continue to make up the majority of the book, which supports portfolio resilience and aligns with our broader risk management strategy. The charts show that most customers across both residential and commercial remain on track or ahead with their repayments. This consistency reflects the strength of our origination standards and the financial resilience of our customers, who continue to manage their commitments effectively, notwithstanding broader economic challenges. The percentage ahead in the commercial book reduced as the book grew just under 30% during the H2, with obviously most recent cohorts less likely to get ahead. The residential loan book remains both well-balanced and fundamentally well secured.

Steve Kinsella: The residential portfolio mix has remained consistent year-on-year, notwithstanding the aggregate book size has reduced. Owner-occupied loans continue to make up the majority of the book, which supports portfolio resilience and aligns with our broader risk management strategy. The charts show that most customers across both residential and commercial remain on track or ahead with their repayments. This consistency reflects the strength of our origination standards and the financial resilience of our customers, who continue to manage their commitments effectively, notwithstanding broader economic challenges. The percentage ahead in the commercial book reduced as the book grew just under 30% during the H2, with obviously most recent cohorts less likely to get ahead. The residential loan book remains both well-balanced and fundamentally well secured.

Speaker #5: The charts show that most customers, across both residential and commercial segments, remain on track or ahead with their repayments. This consistency reflects the strength of our origination standards and the financial resilience of our customers, who continue to manage their commitments effectively, notwithstanding broader economic challenges.

Speaker #5: The percentage ahead in the commercial book reduced as the book grew just under 30% during the second half, with, obviously, most recent cohorts less likely to get ahead.

Speaker #5: The residential loan book remains both well-balanced and fundamentally well-secured. From an LVR perspective, the weighted average LVR of 61% highlights the strong equity position across the book, providing a meaningful buffer against potential market volatility.

Steve Kinsella: From an LVR perspective, the weighted average LVR of 61% highlights the strong equity position across the book, providing a meaningful buffer against potential market volatility. The state-based distribution remains consistent and balanced, with a slight increase to Western Australia since the half year results. There are no signs of concentration risk, with exposure spread across the major markets in a way that provides resilience against localized economic or housing market movements. The combination of a well-diversified geographic footprint and a conservative LVR profile provides confidence in the strength and durability of the residential portfolio. Taking a closer look at the commercial loan book, which remains a key contributor to our balance sheet growth over the year and now constitutes 25% of the total book, as previously mentioned. The underlying collateral remains conservative. The weighted average LVR is 65%, with just under half the book sitting below 70% LVR.

Speaker #5: The state-based distribution remains consistent and balanced, with a slight increase to Western Australia since the half-year results. There are no signs of concentration risk, with exposure spread across the major markets in a way that provides resilience against localized economic or housing market movements.

Speaker #5: The combination of a well-diversified geographic footprint and a conservative LVR profile provides confidence in the strength and durability of the residential portfolio. Taking a closer look at the commercial loan book, which remains a key contributor to our balance sheet growth over the year—and now constitutes 25% of the total book, as previously mentioned.

Speaker #5: The underlying collateral remains conservative. The weighted average LVR is 65%, with just under half the book sitting below 70% LVR. New business is all first-ranking, property-secured facilities, with assets that have good alternative use appeal, providing a consistent risk profile.

Steve Kinsella: New business is all first-ranking property secured facilities with assets that have good alternative use appeal, providing a consistent risk profile. The geographic exposure also reflects deliberate exposure in markets where asset quality is strong and borrower profiles match our risk appetite. Overall, the combination of this diversification and conservative LVRs reflects our considered approach to collateral and portfolio construction as the commercial book continues to grow. Looking at those two portfolios, this slide brings together the key elements of them and the credit quality across both residential and commercial books. Residential, which remains the largest portfolio cohort at AUD 707 million, slightly reduced from AUD 732 million at the half. The average loan size of AUD 405,000 reflects a well-seasoned and conservatively structured portfolio. It remains highly granular with modest individual exposures and a maximum single loan of AUD 5 million with an LVR below 40%.

Speaker #5: The geographic exposure also reflects deliberate exposure in markets where asset quality is strong and borrower profiles match our risk appetite. Overall, the combination of this diversification and conservative LVRs reflects our considered approach to collateral and portfolio construction as the commercial book continues to grow.

Speaker #5: Looking at those two portfolios, this slide brings together the key elements of them and the credit quality across both residential and commercial books. Residential, which remains the largest portfolio cohort at $707 million, is slightly reduced from $732 million at the half.

Speaker #5: The average loan size of $405,000 reflects a well-seasoned and conservatively structured portfolio. It remains highly granular, with modest individual exposures and a maximum single loan of $5 million with an LVR below 40%.

Speaker #5: The top 20 residential loans have a weighted LVR of 58%. The level of diversification limits concentration risk and underpins the resilience of the portfolio.

Steve Kinsella: The top 20 residential loans have a weighted LVR of 58%. The level of diversification limits concentration risk and underpins the resilience of the portfolio. Offset balances total AUD 79 million, and this is consistent with the previous periods and provides an additional buffer within the portfolio. In terms of arrears performance, the 90-plus days arrears stood at 0.47%. As at 30 June, there were no residential mortgagee in possession cases. Turning to the commercial book, the average loan size is around AUD 659,000, and again, consistent with a diversified portfolio of smaller scale property secured facilities. The largest single exposure remains AUD 3.2 million and is supported by good equity coverage. In terms of arrears performance, 90-plus days arrears stood at 0.87% off a small base, with no mortgagee in possession cases.

Speaker #5: Offset balances total $79 million, and this is consistent with previous periods, providing an additional buffer within the portfolio. In terms of arrears performance, the 90-plus days arrears stood at 0.47%.

Speaker #5: And as at 30 June, there were no residential mortgagee-in-possession cases. Turning to the commercial book, the average loan size is around $659,000, and again, consistent with a diversified portfolio of smaller-scale property-secured facilities.

Speaker #5: The largest single exposure remains $3.2 million and is supported by good equity coverage. In terms of arrears performance, 90-plus days arrears stood at 0.87%, off a small base, with no mortgagee-in-possession cases.

Speaker #5: We continue active account-level management and, alongside this, as highlighted earlier, approximately 20% of customers remained ahead on repayments throughout the period. I will now hand over to our CFO, Judith Newman, who will take you through the financial results in more detail.

Steve Kinsella: We continue active account level management. Alongside this, as highlighted earlier, approximately 20% of customers remained ahead on repayments throughout the period. I will now hand over to our CFO, Judith Newman, who will take you through the financial results in more detail.

Judith Newman: Start again. Yeah. Apologies. Thank you, Steve, and good morning. I am pleased to deliver our FY26 financial results today. Our statutory through 10% to 20% growth of our commercial lending portfolio. Introduction of senior secured lending and our continued focus on liquidity management and deposit rate positioning. Pleasingly, FY26 saw us deliver an increase from FY. My computer. Just quickly go back. There we go. Thank you. Our underlying NPAT profit of AUD 1 million was achieved against a backdrop of heightened external uncertainty and ongoing inflationary pressures. Here we can see the walk in key movements between the underlying NPAT in FY25 of AUD 3.8 million through FY26 underlying NPAT of AUD 1 million. Gains achieved in net interest income have been offset by the reduction in other income, driven by the absence of any portfolio transactions during FY26.

Judith Newman: Start again. Yeah. Apologies. Thank you, Steve, and good morning. I am pleased to deliver our FY 2026 financial results today. Our statutory through 10% to 20% growth of our commercial lending portfolio. Introduction of senior secured lending and our continued focus on liquidity management and deposit rate positioning. Pleasingly, FY 2026 saw us deliver an increase from FY. My computer. Just quickly go back. There we go. Thank you. Our underlying NPAT profit of AUD 1 million was achieved against a backdrop of heightened external uncertainty and ongoing inflationary pressures. Here we can see the walk in key movements between the underlying NPAT in FY 2025 of AUD 3.8 million through FY 2026 underlying NPAT of AUD 1 million. Gains achieved in net interest income have been offset by the reduction in other income, driven by the absence of any portfolio transactions during FY 2026.

Speaker #5: Sorry again—yeah, apologies. Thank you, Steve, and good morning. I'm pleased to deliver our FY26 financial results today. Our statutory end result was 10%, with 20% growth in our commercial lending portfolio.

Speaker #5: Introduction of senior secured lending, and our continued focus on liquidity management and deposit rate positioning. Cleanly, FY26 saw us deliver an increase from FY—yeah.

Speaker #5: Quickly back that. There we go. Thank you. Our underlying impact profit of $1 million was achieved against a backdrop of heightened external uncertainty and ongoing inflationary pressures.

Speaker #5: Here we can see the walk in key movements between the underlying impact in FY25 of $3.8 billion through to the FY26 underlying impact of $1 million.

Speaker #5: Gains achieved in net interest income have been offset by the reduction in other income, driven by the absence of any portfolio transactions during FY26.

Speaker #5: There was a $2.9 million net reduction spanning other income, other expenses, and credit loss provision, with a $900,000 tax benefit relating to the portfolio transactions of FY25.

Judith Newman: There was a AUD 2.9 million net reduction spanning other income, other expenses, and credit loss provision with a AUD 900,000 tax benefit relating to the portfolio transactions of FY25. Portfolio transactions will be variable in timing but form part of BNK's operating landscape. In addition to this, our credit loss provision increased further, driven by the growth in our commercial loan book. An uplift in investment in our people and technology occurred as we build capability within the team and look to improve technology platforms. The key metrics of BNK at 30 June demonstrate not only the growth in our underlying assets and liabilities, but also the utilization of both capital and liquidity to drive positive outcomes for the group, whilst remaining within BNK's risk appetite and regulatory thresholds.

Judith Newman: There was a AUD 2.9 million net reduction spanning other income, other expenses, and credit loss provision with a AUD 900,000 tax benefit relating to the portfolio transactions of FY 2025. Portfolio transactions will be variable in timing but form part of BNK's operating landscape. In addition to this, our credit loss provision increased further, driven by the growth in our commercial loan book. An uplift in investment in our people and technology occurred as we build capability within the team and look to improve technology platforms. The key metrics of BNK at 30 June demonstrate not only the growth in our underlying assets and liabilities, but also the utilization of both capital and liquidity to drive positive outcomes for the group, whilst remaining within BNK's risk appetite and regulatory thresholds.

Speaker #5: Portfolio transactions will be variable in timing, but form part of BNK's operating landscape. In addition to this, our credit loss provision increased further, driven by the growth in our commercial loan book.

Speaker #5: An uplift in investment in our people and technology occurred as we build capability within the team and look to improve technology platforms. The key metrics of BNK at 30 June demonstrate not only the growth in our underlying assets and liabilities, but also the utilization of both capital and liquidity to drive positive outcomes for the group, whilst remaining within BNK's risk appetite and regulatory thresholds.

Speaker #5: The uplift in our net interest margin of 44 basis points to 1.96% is derived through delivery against our product strategy and strong liquidity management.

Judith Newman: The uplift in our net interest margin of 44 basis points to 1.96% is derived through delivery against our product strategy and strong liquidity management. Capital adequacy remains strong at 24.6%, and our spot liquidity ratio was 20.7%. BNK's net interest margin grew 44 basis points to 1.96% in FY26, with both lending and deposit books contributing positively to the uplift. The growth in commercial lending and the addition of the senior secured program of investments has delivered strong uplifts. On the funding side, whilst term deposit pricing remained elevated, we saw a net contribution from our overall cost of funding to the NIM outcome. As we entered the Q4 of the year, elevated rate expectations in the market intensified competition for retail and term deposit industry-wide, reducing our net interest margin in the final quarter as foreshadowed at the Q3 trading update.

Judith Newman: The uplift in our net interest margin of 44 basis points to 1.96% is derived through delivery against our product strategy and strong liquidity management. Capital adequacy remains strong at 24.6%, and our spot liquidity ratio was 20.7%. BNK's net interest margin grew 44 basis points to 1.96% in FY 2026, with both lending and deposit books contributing positively to the uplift. The growth in commercial lending and the addition of the senior secured program of investments has delivered strong uplifts. On the funding side, whilst term deposit pricing remained elevated, we saw a net contribution from our overall cost of funding to the NIM outcome. As we entered the Q4 of the year, elevated rate expectations in the market intensified competition for retail and term deposit industry-wide, reducing our net interest margin in the final quarter as foreshadowed at the Q3 trading update.

Speaker #5: Capital adequacy remains strong at 24.6%, and our spot liquidity ratio was 20.7%. BNK's net interest margin grew 44 basis points to 1.96% in FY26, with both lending and deposit books contributing positively to the uplift.

Speaker #5: The growth in commercial lending and the addition of the senior secured program of investments have delivered strong uplifts. On the funding side, while term deposit pricing remained elevated, we saw a net contribution from our overall cost of funding to the NIM outcome.

Speaker #5: As we entered the fourth quarter of the year, elevated rate expectations in the market intensified competition for retail and term deposits industry-wide, reducing our net interest margin in the final quarter as foreshadowed at the Q3 trading update.

Speaker #5: Over the second half of FY26, driven by three RBA cash rate increases, customers have been actively seeking high-yield returns for their funds.

Judith Newman: Over the H2 of FY26, driven by three Reserve Bank of Australia cash rate increases, customers have been actively seeking high yield returns for their funds. In a highly competitive market with term deposit rates rising, we have seen a shift in BNK's funding mix from at call towards term deposits. In addition, we also witnessed higher levels of competition for savings accounts across online deposit channels. During the H2 of FY26, we established BNK's NCD program following the receipt of our investment-grade credit rating from Standard & Poor's in late 2025. This has enabled us to further diversify our funding channels to support and complement our liquidity management and manage margins. As noted, BNK's operating expenses increased by 10% over the year to AUD 26.6 million. Employment costs remain the main driver for this increase, with targeted roles in the team that will support our growth agenda.

Judith Newman: Over the H2 of FY 2026, driven by three Reserve Bank of Australia cash rate increases, customers have been actively seeking high yield returns for their funds. In a highly competitive market with term deposit rates rising, we have seen a shift in BNK's funding mix from at call towards term deposits. In addition, we also witnessed higher levels of competition for savings accounts across online deposit channels. During the H2 of FY 2026, we established BNK's NCD program following the receipt of our investment-grade credit rating from Standard & Poor's in late 2025. This has enabled us to further diversify our funding channels to support and complement our liquidity management and manage margins. As noted, BNK's operating expenses increased by 10% over the year to AUD 26.6 million. Employment costs remain the main driver for this increase, with targeted roles in the team that will support our growth agenda.

Speaker #5: In a highly competitive market, with term deposit rates rising, we have seen a shift in BNK's funding mix from at-call towards term deposits. In addition, we also witnessed higher levels of competition for savings accounts across online deposit channels.

Speaker #5: During the second half of FY26, we established BNK's NCD program following the receipt of our investment-grade credit rating from Standard & Poor's in late 2025.

Speaker #5: This has enabled us to further diversify our funding channels to support and complement our liquidity management, and manage margins. As noted, BNK's operating expenses increased by 10% over the year to $26.6 million.

Speaker #5: Employment costs remain the main driver for this increase, with targeted roles in the team that will support our growth agenda. We have continued to invest in our technology base as we lay further foundations for the technology changes planned.

Judith Newman: We have continued to invest in our technology base as we laid further foundations for the technology changes planned. We saw a reduction in professional fees during the year, driven by the absence of any portfolio transactions during FY26. The reduction in our overall arrears level further demonstrates the credit quality within our loan portfolio. In residential, we have seen reductions across each of the arrears categories, and in commercial portfolio, we have achieved a reduction in our over 90 days. Although commercials lending total arrears greater than 31 days have increased marginally, the accounts are well contained with only two loans over 90 days and well within management's risk tolerances. The probability of default graph demonstrates the likelihood that borrowers will fall into arrears within the next year. The very small percentage movements across the year reinforces the credit quality and stability of the borrowers within our loan books.

Judith Newman: We have continued to invest in our technology base as we laid further foundations for the technology changes planned. We saw a reduction in professional fees during the year, driven by the absence of any portfolio transactions during FY 2026. The reduction in our overall arrears level further demonstrates the credit quality within our loan portfolio. In residential, we have seen reductions across each of the arrears categories, and in commercial portfolio, we have achieved a reduction in our over 90 days. Although commercials lending total arrears greater than 31 days have increased marginally, the accounts are well contained with only two loans over 90 days and well within management's risk tolerances. The probability of default graph demonstrates the likelihood that borrowers will fall into arrears within the next year. The very small percentage movements across the year reinforces the credit quality and stability of the borrowers within our loan books.

Speaker #5: We saw a reduction in professional fees during the year, driven by the absence of any portfolio transactions during FY26. The reduction in our overall arrears levels further demonstrates the credit quality within our loan portfolio.

Speaker #5: In residential, we have seen reductions across each of the arrears categories, and in the commercial portfolio, we have achieved a reduction in our over 90 days.

Speaker #5: Although commercial lending total arrears greater than 31 days have increased marginally, the accounts are well contained, with only two loans over 90 days and well within management's risk tolerances.

Speaker #5: The probability of default graph demonstrates the likelihood that borrowers will fall into arrears within the next year. The very small percentage movements across the year reinforce the credit quality and stability of the borrowers within our loan books.

Speaker #5: The customer repayment profile demonstrates how customers remain resilient and well positioned to manage external pressures, with 38% of our portfolio ahead of their repayments and a further 61% on time.

Judith Newman: The customer repayment profile demonstrates how customers remain resilient and well-positioned to manage external pressures, with 38% of our portfolio ahead of their repayments and a further 61% on time. In addition, our portfolio LVR continues to demonstrate sound credit quality, being well secured with 98% of our loan book now below 80% LVR. BNK's credit quality and loss provision increased by AUD 575,000 during the year, with the overall provision aligned to the uplift in our commercial lending. Our overall coverage has moved from 33 basis points up to 37 basis points, reflecting an uplift from AUD 3.2 million to AUD 3.7 million. Movements in stage 1 provisions reflect the uplift in commercial lending and the associated higher credit risk attached to writing these loans.

Speaker #5: In addition, our portfolio LVR continues to demonstrate sound credit quality, being well secured with 98% of our loan book now below 80% LVR. BNK's credit quality and loss provision increased by $575,000 during the year, with the overall provision aligned to the uplift in our commercial lending.

Speaker #5: Our overall coverage has moved from 33 basis points up to 37 basis points, reflecting an uplift from $3.2 million to $3.7 million. Movements in Stage One provisions reflect the uplift in commercial lending and the associated higher credit risk attached to writing these loans.

Speaker #5: Stage three loan provisions—loans more than 90 days in arrears or in hardship—fell by 48% from June 2025, reflecting BNK's improved arrears position across the group from active early engagement with customers and stronger collection procedures.

Judith Newman: Stage 3 loan provisions, loans more than 90 days in arrears or in hardship, fell by 48% from June 2025, reflecting BNK's improved arrears positions across the group from active early engagement with customers and stronger collection procedures. In addition to our collective provisions, we also assess any heightened risk within the portfolio as an additional overlay. During FY26, we have increased these overlays, recognizing some additional risks in the current economic environment. Overall, BNK remains suitably provisioned for its lending portfolio and risk appetite. BNK's capital ratio reduced during FY26 as we grew the overall balance sheet with higher commercial lending as aligned to our strategic targets. The current position of 24.59% represents a strong capital position, well above regulatory requirements and board minimum thresholds. BNK remains well capitalized with sufficient headroom to deliver continued growth in line with our strategic goals into FY27.

Judith Newman: Stage 3 loan provisions, loans more than 90 days in arrears or in hardship, fell by 48% from June 2025, reflecting BNK's improved arrears positions across the group from active early engagement with customers and stronger collection procedures. In addition to our collective provisions, we also assess any heightened risk within the portfolio as an additional overlay. During FY 2026, we have increased these overlays, recognizing some additional risks in the current economic environment. Overall, BNK remains suitably provisioned for its lending portfolio and risk appetite. BNK's capital ratio reduced during FY 2026 as we grew the overall balance sheet with higher commercial lending as aligned to our strategic targets. The current position of 24.59% represents a strong capital position, well above regulatory requirements and board minimum thresholds. BNK remains well capitalized with sufficient headroom to deliver continued growth in line with our strategic goals into FY 2027.

Speaker #5: In addition to our collective provisions, we also assess any heightened risk within the portfolio as an additional overlay. During FY26, we have increased these overlays, recognizing some additional risks in the current economic environment.

Speaker #5: Overall, BNK remains suitably provisioned for its lending portfolio and risk appetite. BNK's capital ratio reduced during FY26 as we grew the overall balance sheet with higher commercial lending, as aligned to our strategic targets.

Speaker #5: The current position of 25.24% represents a strong capital position, well above regulatory requirements and board minimum thresholds. BNK remains well-capitalised, with sufficient headroom to deliver continued growth in line with our strategic goals into FY27.

Speaker #5: I will now pass back to Steve to provide an update on our strategy.

Judith Newman: I will now pass back to Steve to provide an update on our strategy.

Speaker #1: Thank you, Judith. The economic environment remains challenging for growth. Higher interest rates, stubborn inflation, global geopolitical tensions on multiple fronts, and recent federal budget changes have all created an environment of caution in the real estate sector, with flow-on impacts on general confidence.

Steve Kinsella: Thank you, Judith. The economic environment remains challenging for growth. Higher interest rates, stubborn inflation, global geopolitical tensions on multiple fronts, and recent federal budget changes have all created an environment of caution in the real estate sector, with flow-on impacts on general confidence. Many households are feeling financially pressured. The subdued activity is leading to more heightened competition in lending markets, while deposit markets continue to see investors looking for higher yields. Notwithstanding the various challenges, BNK is well positioned to continue to grow. Our smaller size enables us to adapt quickly and exploit opportunities that arise, and we are focused on three key areas. Our strategic focus is across these three key pillars: profitability, customer experience, and upgrading the technology platform. They are all interrelated. We established a pathway to profitability with a rebalancing of the portfolio.

Speaker #1: Many households are feeling financially pressured. The subdued activity is leading to heightened competition in lending markets, while deposit markets continue to see investors looking for higher yields.

Speaker #1: Notwithstanding the various challenges, BNK is well positioned to continue to grow. Our smaller size enables us to adapt quickly and exploit opportunities that arise, and we are focused on three key areas.

Speaker #1: Our strategic focus is across these three key pillars: profitability, customer experience, and upgrading the technology platform. They are all interrelated. We established a pathway to profitability with a rebalancing of the portfolio.

Speaker #1: We've established a mix of assets, which will generate positive margins and returns on capital. Our focus will now be on disciplined growth of the book to achieve further scale at positive margins for sustainable profitability.

Steve Kinsella: We've established a mix of assets which will generate positive margins and returns on capital. Our focus will now be on disciplined growth of the book to achieve further scale at positive margins for sustainable profitability. As referenced, we did not undertake any portfolio transactions in FY26, but we do expect these to continue, though their precise timing is always difficult to predict. By their nature, we view these transactions as supplementary to growth in our core income. A sharpened focus on liability management and diversifying our funding has also helped with the overall margin management, and we will continue to optimize in that area. Cost growth in FY26 has been about ensuring the right capability and capacity to support growth and resilience through FY27 and was primarily focused on additional staff and some tech uplifts.

Steve Kinsella: We've established a mix of assets which will generate positive margins and returns on capital. Our focus will now be on disciplined growth of the book to achieve further scale at positive margins for sustainable profitability. As referenced, we did not undertake any portfolio transactions in FY 2026, but we do expect these to continue, though their precise timing is always difficult to predict. By their nature, we view these transactions as supplementary to growth in our core income. A sharpened focus on liability management and diversifying our funding has also helped with the overall margin management, and we will continue to optimize in that area. Cost growth in FY 2026 has been about ensuring the right capability and capacity to support growth and resilience through FY 2027 and was primarily focused on additional staff and some tech uplifts.

Speaker #1: As referenced, we did not undertake any portfolio transactions in FY26, but we do expect these to continue, though their precise timing is always difficult to predict.

Speaker #1: By that nature, we view these transactions as supplementary to growth in our core income. A sharpened focus on liability management and diversifying our funding has also helped with overall margin management, and we will continue to optimize in that area.

Speaker #1: Cost growth in FY26 has been about ensuring the right capability and capacity to support growth and resilience through FY27, and was primarily focused on additional staff and some tech uplifts.

Speaker #1: While some further growth can be expected in FY27, this will primarily be focused on the next phase of our technology platform upgrade. Arrears management has been focused on early and active engagement with customers to work through solutions.

Steve Kinsella: Whilst some further growth can be expected in FY27, this will primarily be focused on the next phase of our technology platform upgrade. Arrears management has been focused on early and active engagement with customers to work through solutions. To date, this has shown positive outcomes and will remain a key area of ongoing attention for us. As I said, given BNK is a relatively small ADI, efficient and effective use of our capital is paramount, and our approach will be one of exploring avenues to recycle capital and enable continued business growth. Underpinning the ability to grow the book will be a focus on customer experience. We have developed a number of partnerships to leverage complementary capabilities and expertise across products and services. This will remain an area where we look to expand the depth and breadth of such partnerships.

Steve Kinsella: Whilst some further growth can be expected in FY 2027, this will primarily be focused on the next phase of our technology platform upgrade. Arrears management has been focused on early and active engagement with customers to work through solutions. To date, this has shown positive outcomes and will remain a key area of ongoing attention for us. As I said, given BNK is a relatively small ADI, efficient and effective use of our capital is paramount, and our approach will be one of exploring avenues to recycle capital and enable continued business growth. Underpinning the ability to grow the book will be a focus on customer experience. We have developed a number of partnerships to leverage complementary capabilities and expertise across products and services. This will remain an area where we look to expand the depth and breadth of such partnerships.

Speaker #1: To date, this has shown positive outcomes and will remain a key area of ongoing attention for us. As I said, given BNK is a relatively small ADI, efficient and effective use of our capital is paramount. Our approach will be to explore avenues to recycle capital and enable continued business growth.

Speaker #1: Underpinning the ability to grow the book will be a focus on customer experience. We have developed a number of partnerships to leverage complementary capabilities and expertise across products and services. This will remain an area where we look to expand the depth and breadth of such partnerships.

Speaker #1: This will enable stronger and more positive outcomes for customers—outcomes that we could not provide in isolation. BNK is also a bank for brokers, primarily through the Better Choice brand.

Steve Kinsella: This will enable stronger and positive outcomes for customers that we could not provide in isolation. BNK is also a bank for brokers, primarily through the Better Choice brand. We do not have a B2C offering on the lending side, and deliberately so, to ensure we are focused entirely on creating a level of excellence in that space without any risk of internal conflict or dilution of effort. This will extend from onboarding through to application through to settlement, and geared around a defined mix of digital products and services that can support brokers and their end customers. Driving excellence in customer experience leads to a need to ensure the technology underpinning our operations is modern, robust, and fit for purpose. As referenced in the H1 2026 results, we had paused investment spend to reassess and affirm the direction of travel on the technology front.

Speaker #1: We do not have a B2C offering on the lending side, and deliberately so, to ensure we are focused entirely on creating a level of excellence in that space, without any risk of internal conflict or dilution of effort.

Speaker #1: This will extend from onboarding through to application, through to settlement, and is geared around a defined mix of digital products and services that can support brokers and their end customers.

Speaker #1: Driving excellence in customer experience leads to a need to ensure the technology underpinning our operations is modern, robust, and fit for purpose. As referenced in the first half '26 results, we had paused investment spend to reassess and affirm the direction of travel on the technology front.

Speaker #1: Our core banking platform and supporting loan origination platform will undergo upgrades, which will unlock many opportunities for BNK and further improve the customer experience.

Steve Kinsella: Our core banking platform and supporting loan origination platform will undergo upgrades, which will unlock many opportunities for BNK and further improve the customer experience. A number of these phases are expected to complete through the course of FY27. We know this area is not without challenges and are complex pieces of work that require careful and risk-conscious, deliberate steps to bring to life. A further and more fulsome update on the technology strategy and progress will be shared around the time of the Q1 FY27 trading update. These three pillars, profitability, customer experience, and technology enablement, will be supported by a foundation of robust risk management and compliance to ensure that we meet the ongoing challenges posed by the environment in which we operate. That concludes the formal part of the presentation. With that, I will now hand back to Matt, who will moderate the Q&A session.

Steve Kinsella: Our core banking platform and supporting loan origination platform will undergo upgrades, which will unlock many opportunities for BNK and further improve the customer experience. A number of these phases are expected to complete through the course of FY 2027. We know this area is not without challenges and are complex pieces of work that require careful and risk-conscious, deliberate steps to bring to life. A further and more fulsome update on the technology strategy and progress will be shared around the time of the Q1 FY 2027 trading update. These three pillars, profitability, customer experience, and technology enablement, will be supported by a foundation of robust risk management and compliance to ensure that we meet the ongoing challenges posed by the environment in which we operate. That concludes the formal part of the presentation. With that, I will now hand back to Matt, who will moderate the Q&A session.

Speaker #1: A number of these phases are expected to complete throughout the course of FY27. We know this area is not without challenges, and our work consists of complex pieces that require careful and risk-conscious, deliberate steps to bring to life.

Speaker #1: A further and more comprehensive update on the technology strategy and progress will be shared around the time of the Q1 FY27 trading update. These three pillars—profitability, customer experience, and technology enablement—will be supported by a foundation of robust risk management and compliance, to ensure that we meet the ongoing challenges posed by the environment in which we operate.

Speaker #1: That concludes the formal part of the presentation. With that, I'll now hand back to Matt, who will moderate the Q&A session.

Speaker #2: Thank you, Steve, and thank you, Judith. We have a few questions here, but just a reminder that you can submit any questions now in the Q&A session through the Zoom interface that you're currently logged into. I'll start with our first question now, which I think is best answered by Judith.

Matt Vaughan: Thank you, Steve, and thank you, Judith. We have a few questions here. Just a reminder that you can submit any questions now in the Q&A session through the Zoom interface that you are currently logged into. I will start with our first question now, which I think is best answered by Judith. Can you please provide an overview of what spending was capitalized to help reconcile underlying profit to fall in NTA? Let us turn that around to you, Judith.

Speaker #2: Can you please provide an overview of what spending was capitalized to help reconcile underlying profit to the fall in NTA? Sorry, let's turn that around to you, Judith.

Speaker #3: Yep. No costs were capitalised during FY26. The movement between the statutory and underlying profits can be located on page 9 of the annual report, and they include our spend on our core banking system, the write-back of our net contract assets—which is a normal business expense during the year—and the impairment of the goodwill.

Judith Newman: Yeah. No costs were capitalized during FY26. The movement between the statutory and the underlying profits can be located on page 9 of the annual report, and they include our spend on our core banking system, the write-back of our net contract assets that is a normal business expense during the year, and the impairment of the goodwill. The fall in the NTA is driven by the statutory impact reduction, excluding the goodwill, which is always excluded from any NTA calculations.

Judith Newman: Yeah. No costs were capitalized during FY 2026. The movement between the statutory and the underlying profits can be located on page 9 of the annual report, and they include our spend on our core banking system, the write-back of our net contract assets that is a normal business expense during the year, and the impairment of the goodwill. The fall in the NTA is driven by the statutory impact reduction, excluding the goodwill, which is always excluded from any NTA calculations.

Speaker #3: The fall in the NTA is driven by the statutory impact reduction, excluding goodwill, which is always excluded from any NTA calculations.

Speaker #2: Thanks, Judith. The next question was: can you please talk more about the tech spend? Specifically, how much of the spend is BNK, and what are the desired outcomes of this spend? When will these outcomes start to materialise?

Matt Vaughan: Thanks, Judith. The next question was, can you please talk more to the tech spend? Therefore, how much into the spend is BNK, and what are the desired outcomes of the spend, and when will these outcomes start to materialize?

Speaker #1: Thank you, Matt. I will take that question. We are at phase one of the spend outlined in the longer-term strategy, and that is really upgrading the core infrastructure to be cloud-based. We expect the conclusion of that to occur through the course of this quarter.

Steve Kinsella: Thank you, Matt. I will take that question. We are at the phase one of the spend outlined in the longer-term strategy, and that is really upgrading the core infrastructure to be cloud-based, and we expect the conclusion of that to occur through the course of this quarter. We will then look at the level of spend we need to undertake for phases two and three, particularly phase two, and that will form part of the broader and deeper tech update that we will give, as I said, around the time of the Q1 trading update.

Speaker #1: We will then look at the level of spend we need to undertake for phases two and three, particularly phase two, and that will form part of the broader and deeper tech update that we will give, as I said, around the time of the Q1 trading update.

Speaker #2: Thank you, Steve. The next question: You mentioned that the NCD programme was established in FY26. How do you see this funding channel fitting into your overall funding needs going forward?

Matt Vaughan: Thank you, Steve. The next question. You call out that the NCD program was established in FY26. How do you see this funding channel fit into your overall funding needs going forward?

Matt Vaughan: Thank you, Steve. The next question. You call out that the NCD program was established in FY 2026. How do you see this funding channel fit into your overall funding needs going forward?

Speaker #3: Thanks, Matt. Yes, our NCD funding channel—we've seen a steady uplift. At June 30th, that was at $11 million. As we've progressed into FY27, we've seen a steady increase in those funding receipts.

Judith Newman: Thanks, Matt. Yes. Our NCD funding channel, we have seen a steady uplift. At 30 June, that was at AUD 11 million. As we have progressed into FY27, we have seen a steady increase in those funding receipts, and we see this to be just a complement to our ongoing funding mix as the program expands further.

Judith Newman: Thanks, Matt. Yes. Our NCD funding channel, we have seen a steady uplift. At 30 June, that was at AUD 11 million. As we have progressed into FY 2027, we have seen a steady increase in those funding receipts, and we see this to be just a complement to our ongoing funding mix as the program expands further.

Speaker #3: And we see this as just a complement to our ongoing funding mix as the programme expands further.

Matt Vaughan: Thanks, Judith. The next question. How will organic growth and the costs which come with upgrading and maintaining the core banking platform close the gap between current share price and NTA?

Speaker #2: Thanks, Judith. The next question: how will organic growth and the costs which come with upgrading and maintaining the core banking platform close the gap between the current share price and NTA?

Speaker #1: Obviously, the share price is driven by a number of factors—some of which management can control, and many that are market-driven and investor-driven.

Steve Kinsella: The share price is driven by a number of factors, some of which management can control, and many are market-driven and investor-driven. So we cannot pretend that we can control the latter. The share price obviously trades at a hefty discount to NTA, and management's focus is very much on growing organic profitability and organic capital. Over time, you would hope that that organic growth and the better returns and sustainable profitability leads to an assessment of the share price by the market. As I said, that is a market-driven outcome that investors have to choose and decide for themselves.

Speaker #1: So we can't pretend that we can control the latter. The share price obviously trades at a hefty discount to NTA, and management's focus is very much on growing organic profitability and organic capital.

Speaker #1: And over time, you would hope that that organic growth, and the better returns and sustainable profitability, leads to an assessment of the share price by the market.

Speaker #1: But, as I said, that is a market-driven outcome that investors have to choose and decide for themselves. But our focus is very much on what we can control, and that comes back to those three pillars that I was talking about: ensuring that we can continue on a path of sustainable profitability, that we increase the returns to the business, we're able to fund and invest in the future tech spend that we need to undertake, and, above all, making sure that customers enjoy an excellent experience with BNK, and we can deliver growth in the balance sheet and results as a consequence of that.

Steve Kinsella: Our focus is very much on what we can control, and that comes back to those three pillars that I was talking about, ensuring that we can continue on a path of sustainable profitability, that we increase the returns to the business, we are able to fund and invest in the future tech spend that we need to undertake, and above all, making sure that customers enjoy an excellent experience with BNK, and we can deliver growth in the balance sheet and results as a consequence of that.

Matt Vaughan: Thank you, Steve. We don't have any more questions queued up, so I'll just pause for a moment to give everyone an understanding. Sorry, to give everyone a chance to submit any final questions. One has just come through, and it's addressed to both of you. Steve and Judith, can you please share your respective initial thoughts since taking on your roles at BNK? Who would like to start?

Speaker #2: Thank you, Steve. We don’t have any more questions queued up, so I’ll just pause for a moment to give everyone—sorry—to give everyone a chance to submit any final questions.

Speaker #2: One has just come through, and it's addressed to both of you. Steve and Judith, can you please share your respective initial thoughts since taking on your roles at BNK?

Speaker #2: Who would like to start?

Speaker #1: I might let Judith go first.

Steve Kinsella: I might let you to go first.

Judith Newman: Thank you.

Speaker #4: Have one moment.

Steve Kinsella: One moment.

Judith Newman: I have actually been in the business for quite a while, so progressing through to CFO is an area that I have shadowed for quite a while, working underneath Steve and various CFOs before that. I am looking forward to taking the next step and progressing and helping to grow BNK further.

Speaker #3: I've been in the business for quite a while, so progressing through to CFO is an area that I've shadowed for quite a while, working underneath Steve and various CFOs before that.

Speaker #3: So I'm looking forward to taking the next step, progressing, and helping to grow BNK further.

Speaker #1: Yeah, so look, I think stepping into this role, obviously there have been some good foundations laid previously, and I think the mantle for Judith and me is to carry on with that and to take it to the next level.

Steve Kinsella: Yeah. So look, I think stepping into this role, obviously, there have been some good foundations laid previously, and I think the mantle for Judith and I is to carry on with that and to take that to the next level. We certainly see a lot of opportunity for BNK to continue to grow. As I said, we are a small organization, and that creates a certain nimbleness and flexibility that we can drive forward with, which may not be available to larger organizations. So I do think our time and ability to react to market conditions and opportunities will be there. I also think that there is an area across the team where there is a level of enthusiasm to provide that excellence in customer experience and to really drive the technology platform forward as well.

Speaker #1: We certainly see a lot of opportunity for BNK to continue to grow. As I said, we are a small organisation, and that creates a certain nimbleness and flexibility that we can drive forward with, which may not be available to larger organisations.

Speaker #1: So, I do think our timing and ability to react to market conditions and opportunities will be there. I also think that there is, across the team, a level of enthusiasm to provide that excellence in customer experience.

Speaker #1: And to really drive the technology platform forward as well. That's something that I think we'd all agree has been in need of an upgrade, and we're looking to really nail some milestones on that over the next 12 months.

Steve Kinsella: And that is something that I think we would all agree has been in need of an upgrade, and we are looking to really nail some milestones on that over the next 12 months. So there is lots of runway ahead and lots of growth opportunity is, I think, the general sense that we all have. And certainly it is what is enthusing me each day. I think BNK has a lot of opportunity through its Better Choice brand, and through our deposit product offering as well. So there is plenty to look forward to and plenty to work on.

Speaker #1: So there’s lots of runway ahead, and lots of growth opportunities, I think the general sense that we all have. And certainly, it’s what’s enthusing me each day.

Speaker #1: I think BNK has a lot of opportunity through its Better Choice brand and through our deposit product offering as well. So, there's plenty to look forward to and plenty to work on.

Speaker #2: Thank you, Steve. Another question—and I think it's best to stay with you again, Steve. The question is: Have senior warehouse funding opportunities contributed to revenue growth?

Matt Vaughan: Thank you, Steve. There is another question, and I think best placed with you again, Steve. The question is: senior warehouse funding opportunities contributed to revenue growth. How is the pipeline of future funding opportunities looking given broader private credit market concerns?

Speaker #2: How is the pipeline of future funding opportunities looking, given the broader private credit market concerns?

Speaker #1: Yes, the pipeline is reasonably healthy. All of these transactions are fairly lumpy by nature, as you will have seen from the previous investments. We, too, take a senior position in those, so we are looking to subordinate the riskier elements and make sure that it's exposures that we're comfortable with. We're comfortable with the operators.

Steve Kinsella: Yes. The pipeline's reasonably healthy. All of these transactions are fairly lumpy by nature, as you will have seen from the previous investments. We do take a senior position in those, so we are looking to subordinate the riskier elements and make sure that it's exposures that we're comfortable with. We're comfortable with the operators, and we're comfortable with the underlying asset class and how the credits are being assessed within any of those structures. We do see further opportunity. Whilst there are economic challenges, there are also plenty of continuing good, healthy growth areas for us, and that is a path that we're looking to continue. But again, it will be cautious. We do spend a lot of time with each of the investments we have made so far on the due diligence. We have quite a thorough process that we go through, and that will continue.

Speaker #1: And we're comfortable with the underlying asset class and how the credits are being assessed within any of those structures. So, we do see further opportunity.

Speaker #1: While there are economic challenges, there are also plenty of continuing good, healthy growth areas for us. That is a path we are looking to continue.

Speaker #1: But again, we will be cautious. We do spend a lot of time with each of the investments we have made so far on the due diligence.

Speaker #1: We have quite a thorough process that we go through, and that will continue. Nonetheless, there are some in the pipeline, and we do expect further growth in that product asset class.

Steve Kinsella: Nonetheless, there are some in the pipe, and we do expect further growth in that product asset class.

Matt Vaughan: Thank you, Steve. I'll just pause again for a moment. That's all the questions we have, but if there are any final questions, if you could please submit them now. Steve, a question for you regarding dividends and when we think our next dividend payment might be.

Speaker #2: Thank you, Steve. I'll just pause again for a moment. That's all the questions we have, but if there are any final questions, please submit them now.

Speaker #2: Steve, I have a question for you regarding dividends and when we think our next dividend payment might be.

Speaker #1: Thank you, Matt. We, as BNK Bank, haven't made a dividend payment, obviously. I think the previous dividend was with the combined organization as a result of a separation.

Steve Kinsella: Thank you, Matt. As BNK Bank, we haven't made a dividend payment, obviously. I think the previous dividend was with the combined organization as a result of a separation. We don't forecast a dividend in the immediate future. It is a capital management activity that obviously would be subject to board approval and ultimately APRA approval as well, under the broader capital management approach. As we are, we're well capitalized for the business that we need to go into. But at this point, we don't see any likelihood of a dividend for the next financial year.

Speaker #1: We don't forecast a dividend in the immediate future. It is a capital management activity that obviously would be subject to Board approval and ultimately APRA approval as well, under the broader capital management approach.

Speaker #1: As we are, we're well capitalised for the business that we need to go into. But at this point, we don't see any likelihood of a dividend for the next financial year.

Speaker #2: Okay, there doesn't appear to be any more questions. So that concludes our webinar today. Thank you for every thank you to everyone for joining our Results Webinar and this concludes the presentation.

Matt Vaughan: Okay. There doesn't appear to be any more questions, so that concludes our webinar today. Thank you to everyone for joining our results webinar, and this concludes the presentation.

Operator: Goodbye

Q4 2026 BNK Financial Group Inc Earnings Call

Request TrialDemo

BNK Financial Group

Earnings