Bendigo and Adelaide Bank (ASX:BEN) responded to a letter from the Australian Securities Exchange, clarifying that margin performance, although important, is only one of the factors that contribute to its overall financial performance, according to a Tuesday ASX filing.

It noted that the change in margin performance in the fiscal year 2025 first half, compared with the previous half represented a 3% deterioration, which did not amount to a material deterioration in isolation.

It added that its rate of cost growth in the first half should not be considered unexpected, because, among other things, it previously announced that it was expecting increased investment spend of AU$30 million to AU$40 million in fiscal 2025 and that about two-thirds of this would be expensed rather than capitalized.

The bank's shares fell almost 2% in recent trading on Tuesday.