First Impression: Bendigo Adelaide Bank (BEN) 1H17

Came in close to consensus with better other income and flattish costs offsetting lower NIM (-6bp although spreads fared better, down only 5bp but volumes stronger) – and also despite higher BDD – which should perversely come as a relief as it shows the regional is behaving normally and not skimping on BDD. The Homesafe contribution was $46m vs. our $45m estimate. CET1 at ~8%, stable. Overall , decent result with NIE/NIM upside in 2H17 due to recent rate rises and also expect further cost cuts. | BDD charge $40m/13bp GLA (BP $29m/10bp GLA, consensus ~$26m/9bp GLA). | Outlook: “Clear evidence of delivering on strategy, Efficiency gains being realised, Outlook for competition uncertain.” | Today’s share price reaction: Down 2.7% to $12.29 (10.04 am).