APRA capital charge
Bendigo and Adelaide Bank Limited (the Bank) acknowledges APRA’s announcement today regarding the Bank’s operational risk requirements.
APRA has determined to apply a $50 million operational risk capital charge on the Bank which will be effective from 1 January 2026. The capital charge is expected to reduce the Bank’s Level 2 Common Equity Tier 1 (CET1) ratio by approximately 17bps.
As at 30 November 2025 the Bank’s CET1 ratio was 11.19% and remains well above the Board’s target and APRA’s definition of ‘unquestionably strong’.
AUSTRAC Enforcement investigation
Further to the Bank's ASX announcement dated 25 November 2025 relating to Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) deficiencies, AUSTRAC has identified serious potential contraventions of the AML/CTF Act (2006) and has commenced an Enforcement investigation.
AUSTRAC has a wide range of possible enforcement actions and has not yet made a decision regarding the appropriate regulatory response, including whether enforcement action will be taken. The Bank will continue to engage constructively with AUSTRAC.
The Bank continues to work on uplifting its approach to risk management, in particular non-financial risk and acknowledges the need to intensify its efforts.
Bendigo Bank Chair Vicki Carter said: “The Bank recognises robust risk management practices are critically important to ensure the Bank can continue to protect its customers and deliver on its purpose of feeding into the prosperity of customers and communities.”
Bendigo Bank CEO and Managing Director Richard Fennell said: “Bendigo Bank has taken a number of steps to improve its risk capability and strengthen its risk culture over the last 12 months however I recognise the need to intensify our focus and our efforts.”
The Board and Executive are fully committed to the required uplift in non-financial risk maturity. Cost estimates will be provided to the market when they are determined.
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