Bendigo Bank flags $540m impairment and $9m restructuring costs

The news: Bendigo and Adelaide Bank has flagged a goodwill impairment of $539.5 million in its consumer cash generating unit, reflecting a "balanced approach to the heightened level of global uncertainty".

The numbers: Bendigo also announced additional restructuring costs of $9 million, after commencing the first phase of its productivity program in the last quarter. The program is impacting over 100 roles across a number of business functions and includes the closure of 10 corporate branches.

The context: The banking group said that each year the carrying value of goodwill is tested for indicators of impairment. As part of Bendigo's year-end process, the company has recognised the $539.5 million impairment, driven by an increase in the discount rate used in the goodwill impairment testing.

Both costs will be booked as non-cash items and will impact Bendigo's second-half statutory profit. The bank said they will not impact its FY25 cash earnings or its ability to pay a dividend.