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Total lending balances in business and agri lending at Adelaide and Bendigo Bank shot up by 8.2 per cent in the last half year, or $1.7 billion, rising from $16.8 billion in December 2025 to $18.5 billion at June 2026.
In June 2024, Bendigo’s combined commercial loan book sat at $16.6 billion and at $17 billion by June 2025, giving the bank an average annual growth rate of 5.9 per cent.
The split between the two divisions skewed towards business lending, which accounted for $10.9 billion of the June 2026 balance, or 59 per cent, while agribusiness accounted for $7.6 billion.
Business lending increased 12.6 per cent during FY26, with Portfolio Funding up 19.6 per cent and the core business banking product suite up 8.9 per cent. Agribusiness lending increased 3.8 per cent.
Bendigo said the growth was driven by improved banker capability, CRM and lending systems, and deeper customer relationships.
Other major lenders that have posted their results have also recorded strong growth in the business lending books.
Across Bendigo’s overall loan portfolio, residential lending remained the largest segment at 76 per cent, followed by business at 12 per cent, agribusiness at 9 per cent, margin lending at 2 per cent, and consumer lending at 1 per cent.
Residential lending stood at $66.4 billion at June 2026, up 1.9 per cent over the second half, but down 0.4 per cent over the full year. Total lending reached $87.1 billion, increasing 3.5 per cent over the second half and 1.5 per cent year on year.
Business lending growth comes as arrears fall and portfolio shifts
The Business and agribusiness division’s net interest income decreased 1.6 per cent during FY26, with divisional net interest margin contracting by 20 basis points year on year, which Bendigo attributed to “heightened competition and retention-based pricing”.
Meanwhile, Bendigo’s loan arrears data trended downwards.
Business loan arrears (loans that are 90 days or more past due and/or impaired) fell to a record low of 1.32 per cent at June 2026, down from 1.47 per cent at December 2025 and 1.86 per cent at June 2025.
Across the bank, gross impaired loans fell from $129.5 million at June 2025 to $125.6 million at December 2025 and $115.1 million at June 2026.
In terms of Bendigo’s mix of funding values, more than 60 per cent of business exposures were below $10 million, with 63.8 per cent below $10 million, 12.7 per cent between $10 million and $20 million, 12.1 per cent between $20 million and $50 million, and 11.4 per cent above $50 million.
Eighty-nine per cent of business exposures were secured by commercial or residential property.
Bendigo’s SME segment (defined as Business Banking excluding residential loans, Private Bank Commercial, and Business Direct) was $5.2 billion at June 2026, compared with $5.0 billion at December 2025 and $5.1 billion at June 2025.
The business lending portfolio is spread across all states, although Victoria accounted for the lion’s share. Victoria represents 57 per cent of the Business balance, followed by Queensland at 15 per cent, NSW at 13 per cent, South Australia at 7 per cent, Western Australia at 6 per cent, and Tasmania at 2 per cent.
By industry, rental, hiring, and real estate services accounted for 59.7 per cent of the Business lending balance at June 2026, up from 57.9 per cent at June 2025. Construction accounted for 7.8 per cent, followed by healthcare and social assistance at 4.8 per cent and retail trade at 3.7 per cent.
Agribusiness lending reaches $7.6bn
Agribusiness lending increased more modestly than Bendigo’s business loan book, reaching $7.6 billion at June 2026. This is up 11.8 per cent over the half from $6.8 billion at December 2025, but 3.8 per cent over the full financial year from $7.3 billion at June 2025.
The majority of the agribusiness portfolio was made up of smaller lending exposures, with 83.4 per cent below $10 million, 11.7 per cent between $10 million and $20 million, 2.3 per cent between $20 million and $50 million, and 2.6 per cent above $50 million. Ninety-two per cent of agribusiness exposures were secured by farming land.
Victoria accounted for the largest share of Bendigo’s agribusiness balance at 32 per cent, followed by NSW at 22 per cent, Western Australia at 17 per cent, Queensland at 15 per cent, South Australia at 12 per cent, and Tasmania at 2 per cent.
By industry, mixed cropping accounted for 34.4 per cent of the agribusiness lending balance at June 2026, up from 31.7 per cent a year earlier. Grain accounted for 17.7 per cent, while mixed livestock and beef each accounted for 12.4 per cent. Sheep represented 6.1 per cent, dairy 5.7 per cent, other industries 7.1 per cent, and horticulture and viticulture 4.3 per cent.
Agribusiness loan arrears were 2.90 per cent at June 2026, down from 3.44 per cent at December 2025 and 3.3 per cent at June 2025.
Residential lending slips, but broker flows strong
As reported in Broker Daily sister brand The Adviser, Bendigo’s mortgage balances fell over FY26, although broker-originated lending regained momentum in the second half.
The bank’s home-loan book (excluding portfolio funding) stood at $64.6 billion at June 2026, marginally down from $65.1 billion a year earlier, but up from $63.4 billion at December 2025. Its broader residential lending portfolio declined 0.4 per cent over the full year while increasing 1.9 per cent during 2H26.
Despite the improved second-half result, Bendigo’s residential growth continued to lag the broader market, with its loans to households increasing 3.9 per cent over the six months to June, compared with system growth of 6.5 per cent.
Third-party lending accounted for 48 per cent of Bendigo’s 2H26 residential-loan flows, rising from 36 per cent in 1H26 and overtaking retail as the largest source of new mortgage business.
The channel now represents 45 per cent of the bank’s residential portfolio, up from 43 per cent in December 2025.
However, the lender said annual third-party lending was down 5.5 per cent following its exit from the legacy mortgage partner channel.
Overall, Bendigo Bank reported cash earnings of $530.2 million for FY26, up 3.0 per cent on the prior year, while statutory profit was $375.1 million.
Managing director and CEO Richard Fennell said that the bank had “regained momentum” through the second half of the financial year, citing advances in technology and work to uplift the bank’s risk management capabilities as wins.
“The full year result demonstrates our ongoing disciplined approach to driving quality deposit growth and delivery against our strategic agenda,” he said.
“Our earnings have again improved over the half, benefiting from the continued growth in lower cost deposits driving higher margin.
“The Bank has regained lending momentum following a return to growth in our residential lending book through the second half.”
[Related: Court backs Bendigo over brothel debanking decision]
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