Citi retains 'sell' on Bendigo and Adelaide Bank, says Q3 results unlikely to drive earnings revisions

Bendigo And Adelaide Bank

09/04/2026 21:06

** Citi retains its 'sell' rating on Australia's Bendigo and Adelaide Bank  BEN.AX, saying although the bank's Q3 trading update was well received, headline numbers are consistent with prior guidance and do not drive sustained earnings revisions

** Regional lender's stock jumped 8.4% on Thursday after it posted a 12.8% jump in Q3 cash earnings after tax to A$137.9 million ($97.63 million)

** Citi said earnings beat the H2 VA consensus run-rate, but cautioned the beat was driven by asset quality and timing effects in other operating income and costs

** Brokerage says tailwinds driving “strong” 1.98% Q3 NIM - mix, repricing and lower liquid assets - are likely to partially reverse as balance‑sheet growth resumes, and flags decline in average interest‑earning assets

** Citi adds cost savings from newly inked partnerships are already incorporated in management's cost cutting ambitions

** YTD, stock up 7.8%

($1 = 1.4124 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))