First Impressions: Bendigo and Adelaide Bank-BEN- FY16 Result

Slight beat to consensus but largely due to lower BDD charge. NIM was lower than expected due to competition on the funding side (and our repricing scenario did not materialise) plus a greater share paid out to 3rd parties, volumes off a bit with lending below system. Costs ticked up due to higher staff costs – negative “Jaws” while on the flip side, overall asset quality continues to be stable (similar experience to SUN).