BNK Banking Corporation Limited (ASX:BBC)

BNK Banking Corporation Limited (ASX: BBC) has reported its Q3 FY26 trading update, highlighting a 6.0% increase in net interest income to $6.30 million from Q2 FY26 and a 15% increase from Q3 FY25. This growth was driven by higher-margin lending and entry into senior secured credit transactions. The net interest margin (NIM) improved to 2.11%, up 46 basis points on Q3 FY25, with expectations of moderation in Q4 FY26 due to increased funding competition and RBA rate impacts. BNK's commercial lending portfolio grew by 12%, and term deposit balances increased by 9.5%, reflecting a shift towards higher-yielding term products. Arrears levels improved in both residential and commercial lending, with a stable credit loss provision. Operating expenses were consistent with previous quarters and within management expectations. The interim CEO, Steve Kinsella, noted the continued improvement in portfolio returns and a robust outlook for growth in 2027.