The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is in focus today after the bank received a $50 million operational risk capital charge from APRA and revealed it is subject to an AUSTRAC enforcement investigation into AML/CTF compliance.
Image source: Getty Images
What did Bendigo and Adelaide Bank report?
- Received a $50 million operational risk capital charge from APRA effective 1 January 2026
- The capital charge is expected to lower the Level 2 Common Equity Tier 1 (CET1) ratio by about 17 basis points
- CET1 ratio was 11.19% as at 30 November 2025, still above the board's target
- AUSTRAC has begun an enforcement investigation relating to serious potential contraventions of AML/CTF laws
- The bank continues to uplift its approach to non-financial risk management
What else do investors need to know?
APRA's decision means Bendigo and Adelaide Bank must hold extra capital against operational risk, but its CET1 ratio remains above both board targets and regulatory minimums for 'unquestionably strong' banks.
On the regulatory front, AUSTRAC has not yet decided whether it will take enforcement action following its investigation, leaving some future uncertainty for shareholders. The bank has committed to ongoing engagement with the regulator and ramping up risk management efforts.
Cost estimates for potential remediation or additional compliance are not yet available, with the bank saying further updates will be provided when they are determined.
What did Bendigo and Adelaide Bank management say?
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.
What's next for Bendigo and Adelaide Bank?
The board and executive team are prioritising a broader uplift in non-financial risk maturity, particularly in response to regulators' feedback and evolving expectations around compliance. The bank says it will provide investors with cost estimates and more information on remediation plans as details are finalised.
In the near term, the bank is focused on constructive engagement with AUSTRAC, strengthening frameworks, and maintaining capital strength. Investors will be watching for more guidance as further regulatory outcomes emerge.
Bendigo and Adelaide Bank share price snapshot
Over the past 12 months, Bendigo and Adelaide Bank shares have declined 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
