Bendigo and Adelaide Bank Limited (ASX:BEN) has released its 2026 Annual <a href="https://bitcomme.com/back-to-school-a-key-time-of-year-for-parents-to-do-financial-homework/” title=”Back-to-school a key time of year for parents to do financial homework”>Financial Report, disclosing cash earnings of $530.2 million for the financial year ended 30 June 2026, alongside a Common Equity Tier 1 ratio of 11.34% and a net interest margin of 1.95%.
Key Points
- Reported cash earnings of $530.2 million, up 3.0% on the prior year
- Revenue grew 5.1% to $2.046 billion, with operating expenses 4.2% higher at $1.260 billion
- Net interest margin increased by 7 basis points to 1.95%; return on equity grew to 8.01% from 7.34% in FY25
- APRA imposed a $50 million operational risk capital charge in December 2025 following AML/CTF findings, and imposed licence conditions on the bank on 18 August 2026
- AUSTRAC commenced an enforcement investigation in December 2025 following identification of significant deficiencies constituting potential breaches of AML/CTF legislation
Financial Year 2026 Results
According to the filing, Bendigo and Adelaide Bank reported cash earnings of $530.2 million for the financial year ended 30 June 2026, representing a 3.0% increase on the prior year. Revenue grew 5.1% to $2.046 billion, while operating expenses were 4.2% higher at $1.260 billion. The bank’s net interest margin increased by 7 basis points to 1.95%. The full year return on equity grew to 8.01% from 7.34% in FY25. The filing states the bank’s Common Equity Tier 1 ratio stood at 11.34% as of 30 June 2026, with the bank continuing to meet APRA’s definition of unquestionably strong.
AUSTRAC Enforcement Investigation and APRA Action
The filing discloses that in August 2025, the bank engaged an independent consultant to conduct an investigation and root cause analysis into the bank’s approach to the identification, mitigation, and management of money laundering and terrorism financing risk, following the bank identifying and reporting suspicious activity at one of its branches. The investigation found significant deficiencies constituting potential breaches of the Anti-Money Laundering and Counter-Terrorism Financing legislation requiring remediation. In December 2025, AUSTRAC commenced an enforcement investigation and APRA determined that a $50 million operational risk capital charge was to apply to the bank.
APRA Licence Conditions Imposed on 18 August 2026
The filing states that APRA imposed licence conditions on the bank on 18 August 2026 following the completion of a broader non-financial risk root cause analysis that APRA had requested. The key requirements of the licence conditions include preparation of a comprehensive rectification plan in line with APRA’s directions, the appointment of an independent reviewer, and implementation of the rectification plan. The filing states the bank participated fully and constructively with the review. The 2026 Annual Financial Report was approved for release by the Bendigo and Adelaide Bank Board and is available alongside the bank’s Sustainability Report.
