Bendigo's Cost Guidance Puts FY28 Expectations at Risk
Dow Jones
Yesterday
0217 GMT - Bendigo & Adelaide Bank's cost guidance implies material risk to the consensus forecast for fiscal 2028 earnings, Macquarie analysts warn. They tell clients in a note that Bendigo's expectation that business-as-usual costs will grow by 4%-5% in fiscal 2027 sits above the regional lender's medium-term guidance. They think that the next year or two will be challenging, with margin headwinds outweighing fading tailwinds, credit growth slowing, and increased focus on regulatory standards. Ultimately, they think return on equity is capped at 7%, well below Bendigo's 10% target. Macquarie keeps an underperform rating on the stock with an unchanged target price of 9.00 Australian dollars. Shares are up 3.6% at A$10.83.
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