Bendigo and Adelaide Bank faces $70M overhaul
- Bendigo and Adelaide Bank will launch a $70 million rectification plan to address regulatory risk concerns.
- The bank booked the initial $70 million cost into its 2026 results alongside an existing $50 million.
- The company stated the three-year undertaking aims to elevate risk maturity and deliver a structurally stronger institution.
Bendigo and Adelaide Bank (ASX:BEN) will implement a $70 million rectification plan to address non-financial risk weaknesses.
The mandate follows a December 2025 regulatory review that identified significant deficiencies across the bank's governance and compliance frameworks.
" 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," said Bendigo Bank CEO Richard Fennell.
The company stated the three-year programme will cost approximately $70 million, joining a maintained $50 million capital charge.
The bank expects to emerge stronger, and following the announcement, the Bendigo and Adelaide Bank share price was down at $10.26.
The lender reported an unaudited statutory net profit of $375.1 million for 2026 after absorbing these anticipated compliance expenses.
Preliminary cash earnings after tax reached $530.2 million for FY26 and $273.8 million for H2 FY26.
Credit expenses of $15.7 million were incurred during the half, mostly driven by an increase in the bank’s collective provision reflecting the macro environment and ongoing geopolitical tensions.
The business continues navigating heightened regulatory scrutiny following a previous internal anti-money laundering review completed in November 2025.
