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Investor centre
February 26, 2026

BNK Reports 1H26 Results with Improved Margins and Portfolio Rebalancing Progress

BNK Banking Corporation Limited (ASX: BBC) has released its financial results for the six months to 31 December 2025 (1H26), reflecting continued portfolio optimisation, improved margins and disciplined cost management.

Highlights

  • Statutory NPAT: $0.42 million, up 31% on 1H25

  • Underlying NPAT: $0.44 million

  • Net Interest Income: $11.6 million, up 5% on 1H25

  • Net Interest Margin (NIM): 1.88%, up 49 basis points on 1H25

  • Net Income: $13.2 million, up 4% on 1H25

  • Operating expenses: $12.2 million, flat on 1H25

BNK’s total loan book increased 9% from 30 June 2025 to $983 million, supported by the Company’s entry into senior secured investments and continued selective growth in commercial lending. The commercial loan book surpassed $190 million, with higher-return lending now accounting for 43% of the total portfolio.

The Company maintained a strong funding position, with a Deposit-to-Loan Ratio of 105%, and a Capital Adequacy Ratio of 27.0%. Net Tangible Assets per share were $1.00.

Portfolio Rebalancing Driving Margin Improvement

Commenting on the results, BNK Chief Executive Officer Allan Savins said:

“In 1H26 we continued to rebalance the portfolio toward higher-return, capital efficient assets, supporting an improvement in asset mix and further strengthening NIM. We also advanced key strategic initiatives, including the commencement of senior secured investments and measured growth in commercial lending, further diversifying our earnings base. These outcomes were achieved alongside disciplined cost management and prudent balance sheet settings.”

The Company’s strategic shift toward higher-return lending and capital-efficient assets contributed to a 49 basis point improvement in Net Interest Margin to 1.88%.

Asset Quality and Risk Management

During the period, 90+ day residential home loan arrears increased to 1.37% (from 1.20% at 30 June 2025), while 90+ day commercial loan arrears increased to 1.84% (from 0.95%).

Mr Savins noted:

“While arrears rose during the period, the absolute number of customers involved remains low, and we remain appropriately provisioned. Importantly, no losses were incurred.”

More than 97% of BNK’s loan customers remain ahead or on time with repayments.

Outlook

BNK enters the second half of FY26 with a structurally improved earnings mix and strong capital position.

Mr Savins added:

“Despite continued competitive intensity across loan segments, the ongoing reduction in our prime lower-margin residential book has continued to create capacity to deploy funding into higher-return categories, supporting overall margin management.”

“Considering current market dynamics, we anticipate BNK’s diversified income streams and strategic portfolio shifts will support sustainable underlying profit generation.”

The Company will continue exploring opportunities across selected deposit and asset categories, while assessing inorganic growth initiatives and distribution partnerships aligned with its strategy.