2231 GMT - It will likely be some time before Bendigo and Adelaide Bank's core earnings improve. That's the conclusion of Citi after the Australian lender reported a 1H result featuring a 4-5% core earnings miss relative to consensus hopes and signaled costs are on the rise. Analyst Brendan Sproules expects Bendigo's costs to rise by 8.5% in FY 2025 and by 3.5% in FY 2026, reflecting ongoing inflation and rising investment. "With relatively flat forecast revenue over this time frame given existing Net Interest Margin headwinds and rate cuts, we forecast core earnings to trough in late FY 2026," Citi says. It retains a sell call on Bendigo's stock. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
February 17, 2025 17:31 ET (22:31 GMT)
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