Bendigo and Adelaide Bank to offset AML capital charge with low credit losses

Its credit losses are expected to remain low over the next two years.

Bendigo and Adelaide Bank (BEN) should be able to offset regulatory costs with its low credit losses and strong capital, said S&P Global Ratings.

BEN faces an A$50m operation risk capital add-on following weaknesses identified in its anti-money laundering risk management.

The Australia-based bank’s credit loss are estimated to remain low over the next two years, at about 10 basis points (bps) of total loans, the credit rating company said in a report on 24 August 2026.

“Nonetheless, the bank remains vulnerable to a potential rise in credit losses, given elevated housing debt, rising interest rates, and the risk of an unexpected rapid fall in housing prices,” S&P said.

S&P expects a gap between housing demand and supply, which will support a modest recovery in house price growth heading into 2027.

BEN’s regulatory capital levels are expected to remain strong over the next two years. It’s CET1 ratio is 11.34% as of 30 June 2025, and BEN continues to target at CET1 ratio above 10%, S&P said.