Bendigo and Adelaide Bank falls after regulatory measures, brokerages flag uncertainty

Bendigo and Adelaide Bank

18/12/2025 04:28

Updates to add analyst comments

** Shares of Australia's Bendigo and Adelaide Bank BEN.AX fall as much as 3.2% to A$9.96, their lowest levels since April 9

** Australian regulators announced measures to address weakness in the regional lender's risk management practices on Thursday, including imposing an A$50 million ($32.98 million) operational risk capital charge

** Regulator scrutiny follows co's probe into money laundering, terrorism financing control gaps in late November

** Bendigo expects capital charge to squeeze Level 2 common equity tier 1 ratio by ~17 basis points

** Jefferies retains an 'underperform' rating, saying it awaits greater certainty on unresolved issues, such as possible AUSTRAC fines, and the level of potential remediation costs, before considering a positive outlook

**  Morningstar says co' balance sheet looks strong enough to withstand the temporary burden, but a higher-than-expected cost to address deficiencies could put dividends at risk of a modest cut

** Stock down 22.4% YTD

($1 = 1.5163 Australian dollars)

 (Reporting by Anjali Singh and Shruti Agarwal in Bengaluru
)

 ((anjali.singh2@thomsonreuters.com))