BNK Banking Corporation Limited has recorded a notable momentum for the first quarter of fiscal year 2026, according to its latest report.
In its Q1 FY26 Trading Update report, the firm highlighted a growth in several areas such as higher-margin lending settlements, strong capital, and liquidity metrics. Allan Savins (pictured), the CEO of BNK, noted that this supported the company’s goal to diversify credit exposures and scale opportunities that were high-value and capital efficient.
“We’ve made good progress across margin improvement, profitability, and portfolio optimisation – all while maintaining disciplined execution across the business,” said Savins.
The report found that BNK had an unaudited profit for the quarter amounting to $302k after tax. This was $787k in the same period last year. Meanwhile, its unaudited statutory profit after tax was $75k, which was a decrease from the $272k in Q1 FY25. As BNK’s selective growth persisted, its commercial loan book reached more than $160 million. The quarter also saw the establishment of senior secured investments.
“BNK is well positioned to navigate the evolving economic landscape with strong capital and liquidity ratios while exploring new asset opportunities and strategic partnerships for profitable growth,” said Savins.
The bank also reported higher-margin residential and commercial lending settlements of $56 million, a 273% increase from the same period in last year. Because of such developments, 37% of the loan book was now composed of the firm’s higher-margin balances. Including senior secured lending, BNK’s total loan book is now at $941 million, which is a 4.2% increase from what was recorded at 30 June 2025.
Meanwhile, total deposits saw a 1.5% decrease from what was recorded in the previous quarter, amounting to $994 million. Deposit-to-loan ratio was 106% while net interest margin (NIM) was at 1.83%.
“Our approach to optimising portfolio composition has proven effective, establishing a profitable baseline and the capacity to further invest in the business. We remain focused on controlling our cost of funds and operating expenses,” said Savins.
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