Australia's Bendigo and Adelaide Bank eyes best day in over 3-yrs on NIM boost

Bendigo and Adelaide Bank

17/05/2024 06:00

(Updates shares, milestones, adds Citi comments)
    ** Shares of Bendigo and Adelaide Bank  BEN.AX  rise as much
as 8.2% to A$10.730, set for best day since Feb 15, 2021, if
gains hold 
    ** Stock hits highest level since Aug 12, 2022, and is top
gainer on ASX 200 benchmark index  .AXJO 
    ** The lender posts net interest margin (NIM) for 10 months
ended April 30 of 1.87%, up from 1.83% in first-half results
        ** Posts YTD unaudited cash earnings after tax of A$464
mln ($309.07 mln), down 2.3%
  
    ** Analysts at Citi say the trading update reflects a
catch-up from H1 where NIM was abnormally low due to deposit
pricing missteps that have now been rectified
        ** Citi, however, expects similar difficult core
earnings growth trends to persist
  
        ** Brokerage raises PT to A$9.50 from A$8.60, keeps
"sell" rating 
  
        ** Raises FY24 cash earnings estimate by 6.5%, FY25-FY26
estimate ~11% 
  
    ** Stock up 2.6% YTD, as of last close



    ($1 = 1.5013 Australian dollars)
  

 (Reporting by Aaditya Govind Rao and Himanshi Akhand in
Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))