ASX announcements
October 30, 2025

BNK delivers margin expansion and portfolio growth in Q1 FY26

BNK Banking Corporation Limited (ASX: BBC) today released its Q1 FY26 Trading Update, reporting continued momentum across margin expansion, profitability, and portfolio growth.

The quarter saw a significant uplift in higher-margin lending settlements, strong capital and liquidity metrics, and continued execution of BNK’s strategy to diversify earnings through structured credit investments.

Quarter highlights:

  • Underlying (unaudited) Q1 FY26 profit after tax of $302k, compared to $787k in Q1 FY25

  • Statutory (unaudited) Q1 FY26 profit after tax of $75k, compared to $272k in Q1 FY25

  • Commercial loan book surpassed $160 million as selective growth continues

  • Senior Secured Investments established during the quarter

  • Higher-margin residential and commercial lending settlements of $56 million, representing a 273% increase compared to Q1 FY25; higher-margin balances now comprise 37% of the loan book

  • Total loan book (including senior secured lending) of $941 million, up 4.2% from 30 June 2025

  • Total deposits of $994 million, a 1.5% decrease from 30 June 2025

  • Deposit to Loan Ratio: 106%

  • Net Interest Margin (NIM): 1.83% in Q1 FY26, up from 1.38% in Q1 FY25

  • 90+ day residential home loan arrears: 1.04%, down from 1.10% at 30 June 2025

  • 90+ day commercial loan arrears: 1.22%, up from 0.95% at 30 June 2025

  • Operating expenses up 13% from Q1 FY25

  • Strong capital ratio: 28.6%, from 29.0% as at 30 June 2025

  • Net Tangible Assets (unaudited) per share: $1.00

BNK CEO Allan Savins said the September quarter represented “another important step in BNK’s strategic evolution.”

“We’ve made good progress across margin improvement, profitability, and portfolio optimisation — all while maintaining disciplined execution across the business.”

He noted strong performance in higher-margin lending and the successful completion of two senior secured structured credit transactions, which support BNK’s goal to diversify credit exposures and scale high-value, capital-efficient opportunities.

“Our approach to optimising portfolio composition has proven effective, establishing a profitable baseline and the capacity to further invest in the business. We remain focused on controlling our cost of funds and operating expenses,” he said.

“BNK is well positioned to navigate the evolving economic landscape with strong capital and liquidity ratios while exploring new asset opportunities and strategic partnerships for profitable growth.”

Read the full ASX announcement here