Down 20% since November, are Bendigo Bank shares now a buy?

A leading investment expert delivers his outlook for Bendigo Bank shares.

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Key points

  • Bendigo and Adelaide Bank shares have dropped more than 20% since 6 November.
  • The bank's shares dropped significantly following an independent report identifying weaknesses in the bank's anti-money laundering and counter-terrorism financing controls.
  • Family Financial Solutions' Jabin Hallihan recommends holding Bendigo Bank shares, advising investors to monitor regulatory developments and the bank's remediation efforts.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $10.37. In late morning trade on Wednesday, shares are swapping hands for $10.34 apiece, down 0.3%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Bendigo Bank shares are down 22.3% over 12 months, trailing the 2.4% one-year gains posted by the benchmark index. Though that doesn't include the two fully-franked dividends totalling 63 cents a share the bank paid out over the year.

At the current price, Bendigo Bank stock trades on a fully franked trailing dividend yield of 6.1%.

Which brings us back to our headline question.

With the ASX 200 bank stock down 20.1% since early November, is it time to buy the dip?

Bendigo Bank shares: Buy, hold, or sell?

Family Financial Solutions' Jabin Hallihan recently ran his slide rule over the Aussie bank (courtesy of The Bull).

"Bendigo and Adelaide Bank is one of Australia's largest regional banks," Hallihan said.

Commenting on the big fall Bendigo Bank shares suffered in November, he noted, "Recently, an independent report highlighted weaknesses in the bank's anti-money laundering and counter terrorism financing controls. The shares plunged on the news."

Despite that regulatory weakness, Hallihan has a hold recommendation on the stock. He said:

The bank is committed to undertaking the necessary enhancements to systems, frameworks and processes to ensure full compliance with its obligations under the Anti-Money Laundering and Counter Terrorism Financing Act 2006.

Hallihan concluded, "The shares on December 4 were trading below our $11 target. We suggest holding the stock, but investors should monitor regulatory developments and the bank's remediation plan."

What happened with the ASX 200 bank stock in November?

Bendigo Bank shares had two horror days of trading last month.

On 11 November, shares in the ASX 200 bank stock closed down 8.5% following the release of the company's first-quarter (Q1 FY 2026) results, which fell short of market expectations.

Two weeks later, on 25 November, shares tumbled another 7.4% after the bank reported on an independent Deloitte review. That review identified deficiencies in Bendigo Bank's approach to identifying, mitigating, and managing money laundering and terrorism financing risk between 1 August 2019 and 1 August 2025 at multiple branches.

The Bendigo Bank board said it is committed to fully funding the uplift program to address all of the identified deficiencies.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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