Statement from Bendigo Bank

Bendigo Bank acknowledges the announcement from the Australian Prudential Regulation Authority (APRA) imposing licence conditions on the Bank in relation to its management of non- financial risk (NFR) and the required program to uplift NFR capability. In response, the Bank is today announcing the establishment of a multiyear program of work to address deficiencies identified in its current non-financial risk frameworks and capabilities and to meet the licence conditions imposed.

The key requirements of the licence conditions include:

1. Preparation of a comprehensive rectification plan in line with APRA’s directions;
2. Appointment of an Independent Reviewer;
3. Implementation of the rectification plan.

The licence conditions stem from a NFR review and root cause analysis requested by APRA in December 2025 to understand the extent of NFR issues at the Bank. This followed the findings of a BEN initiated AML/CTF review completed in November 2025.

The NFR review has now been completed. It identified significant weaknesses in our management of non- financial risk. As a result, BEN has been working on the development of a plan to address the findings of the report.

Chief Executive Officer and Managing Director, Richard Fennell, said “Our current non-financial risk management capabilities are clearly not where they need to be, and our risk rectification plan will be designed to drive a fundamental shift in our management of non-financial risk.”

“The rectification plan will strengthen our approach to risk management, including governance and compliance management. It will reinforce accountability and address our risk capability and culture deficiencies. We will continue to work collaboratively with our regulators to ensure we meet their expectations and importantly our own,” he said.

The program is a significant undertaking and expected to take approximately three years at an initial estimated cost of $70 million, which has been included in the 2026 financial year results.

“We take our obligations very seriously. This is a key priority for the Board and Executive Team, and the rectification plan will be sponsored directly by me as CEO. Elevating our risk maturity is fundamentally about better serving our customers and the community. It is critical we get this right so we can continue delivering for all our stakeholders” Mr Fennell said.

Chair of Bendigo Bank Vicki Carter said she acknowledged the Bank's shortcomings and is very disappointed.

"The Bank understands that we have significant work ahead of us to uplift our risk management. The Board is fully committed to ensuring the Bank has the necessary capability and capacity to do so. We understand the important role we need to play to ensure we emerge as a stronger Bank and one that can continue to deliver on our purpose of feeding into the prosperity of our customers and communities,” Ms Carter said.

The existing capital charge of $50 million, which came into effect on 1 January 2026, remains in place.

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