BNK expands structured credit portfolio with new senior secured investment

BNK Banking has announced the completion of its second senior secured investment for FY26, reinforcing its push into structured credit and asset-backed lending.

The latest transaction sees BNK join a senior secured warehouse facility supporting a well-established Australian non-bank lender. Backed by a diversified pool of high-quality receivables, the deal aligns with BNK’s disciplined risk-return strategy.

As part of the syndicate, BNK has acquired senior notes in the warehouse, expanding on its initial structured credit transaction settled in July.

This follows BNK’s debut in structured finance earlier this year, when the digital bank first backed a syndicated senior secured warehouse facility for a growing Australian non-bank lender. That transaction marked BNK’s entry into asset-backed lending and private credit — a fast-growing sector both globally and domestically.

BNK targets capital-efficient growth through structured finance

BNK CEO Allan Savins (pictured) said the investment underscores the bank’s disciplined and scalable approach to balance sheet growth.

“This second senior secured investment reflects BNK’s strategy to scale high-value, capital-efficient opportunities through disciplined funding and strategic partnerships,” Savins said in a media release.

He added that structured investments such as these play a key role in diversifying BNK’s credit exposures, supporting sustainable earnings and long-term value creation.

The move follows BNK’s strong FY25 financial results, which showed underlying NPAT rising to $3.8 million, net interest income up 13% to $21.9 million, and a higher-margin lending portfolio now making up around 28% of total loans. Non-interest income more than doubled to $8.9 million, while the bank’s capital adequacy ratio strengthened to 29%, reflecting the success of its transformation strategy and focus on disciplined, sustainable growth.

The transaction forms part of BNK’s broader plan to expand risk-aligned structured finance participation and strengthen balance sheet resilience.

Savins said BNK’s transformation is about “building a stronger, more sustainable BNK that delivers value for customers, brokers, and shareholders alike.”

The completion of this second investment signals a strong start to FY26, with BNK positioning itself to capitalise on future funding opportunities and drive continued portfolio diversification.

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