BNK Reports FY26 Results with Improved Margins and Continued Commercial Growth
BNK Banking Corporation has reported its financial results for the 12 months to 30 June 2026 (FY26), delivering improved net interest margin and continued growth in its commercial lending book, alongside a statutory loss driven by a non-cash goodwill impairment.
FY26 Highlights
- Statutory NPAT loss of $3.7m, reflecting a $3.5m goodwill impairment
- Underlying NPAT profit of $1.0m
- Net Interest Income up 10% to $24.0m
- Net Interest Margin improved 44 basis points to 1.96%
- Net Income up 3% to $26.8m
- Commercial loan book surpassed $247m
- Total lending book of $994m, up 10% year-on-year
- Deposit-to-Loan Ratio of 107%
- 90+ day residential arrears down to 0.47% (from 1.20%)
- 90+ day commercial arrears down to 0.87% (from 0.95%)
- Capital Adequacy Ratio of 24.6%
- Net Tangible Assets per share of $0.99
A Year of Selective, Disciplined Growth
FY26 saw BNK continue its expansion into commercial lending, which now represents 25% of the total lending portfolio, while diversifying further into senior secured programs (4% of the book) and launching a new NCD funding program. Together, these initiatives helped lift Net Interest Margin to 1.96% and grow Net Interest Income by 10% over the year.
Asset quality also improved, with arrears across the residential portfolio falling despite a higher interest rate environment, and commercial arrears remaining within management’s risk tolerances. Combined 90+ day arrears across the total portfolio sat at 0.58%.
On the funding side, customers continued to favour higher-yielding term deposits, which grew 19% over the year as savers sought better returns across the online deposit market.
Operating expenses rose 10%, reflecting investment in new roles to support the Company’s growth strategy and the early stages of a broader technology transformation program.
BNK Chief Executive Officer Steve Kinsella said the results reflected the Company’s focus on margin quality and disciplined growth:
“The full year result demonstrated delivery of our focus on improving margins and returns, whilst seeking selective growth in the balance sheet. Our net interest income and NIM both improved on the prior year. Total underlying income was also pleasingly improved, despite the absence of any significant transactions throughout FY26.”
“Our cost growth represents an increase in overall capability to deliver on the strategy, as well as the early stages of a transformational technology investment. This investment will significantly uplift our broker partner and customer experience to drive further volume growth, whilst enabling productivity enhancement and greater operational scalability.”
“The year has generated solid foundations to deliver tangible and meaningful progress through the course of FY27.”
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