Australia’s BEN to see low credit losses but at risk from housing shock: S&P

Operating efficiency will likely continue to improve on digital investments.

Bendigo and Adelaide Bank’s (BEN) credit losses are expected to remain low over the next two years, although they remain vulnerable to losses from a correction of housing prices.

The Australian regional bank is expected to continue improving its operating efficiency through its digital investments, said S&P Global Ratings on 16 February 2026.

“The bank made good progress on its multi-year technology transformation program in the first half of fiscal 2026 (ending 30 June 2026), completing the consolidation of its legacy core banking systems onto a single platform,” S&P said.

But the bank remains vulnerable to a potential rise in credit losses, given elevated household debt and the tail risk of a sharp correction in house prices, the ratings agency said.

BEN reported cash earnings of A$256m for the six months that ended in December 2025, up 3% compared to the prior half-year period.

It is expected to complete the acquisition of Members Banking Group’s retail loan and deposit books in the first half of the 2027 fiscal year, or between July-December 2026.