Bendigo and Adelaide Bank (BEN.AX): 1Q27 trading update: A downward trajectory on the NIM see-saw

J.P. Morgan reiterates Neutral on Bendigo and Adelaide Bank (BEN.AX) after its 1Q27 trading update, trimming its Dec-27 price target to A$10.30 from A$10.40. 1Q27 cash NPAT of A$112.7m was slightly behind forecasts, though underlying NPAT of ~A$133m ex notable items was broadly in line. Revenue was weak (up only 0.5% vs the 2H26 quarterly average despite a day-count benefit), with NIM at 1.94%, down 6bps qoq (-4bps ex liquids), and non-interest income down 10% on Homesafe and FX headwinds, partly offset by well-contained BAU costs and benign loan impairment expense of A$6.8m. Credit growth was negative, with lending balances contracting 3.1% annualised;