Bendigo and Adelaide Bank’s release of quarterly credit risk tables for the period ending 31 March 2026 provides a snapshot of the lender’s loan book health and capital positioning. The bank reported non-performing exposures of $1,158.3 million against total gross credit exposures of $106,527.9 million, translating to a non-performing loan ratio of approximately 1.09 percent. This level sits comfortably within acceptable ranges and suggests the bank’s credit portfolio remains relatively clean despite ongoing economic pressures in the domestic market.
Credit provisions tell an equally important story. Bendigo held total provisions of $357.2 million against non-performing exposures, representing a provision coverage ratio of roughly 31 percent. While this may seem conservative relative to some peers, it reflects the bank’s assessment of recovery prospects embedded within its non-performing book. The bank allocated $72.7 million in specific provisions against Stage 3 and Stage 2 underperforming exposures, with the remainder $284.5 million held as general provisions. This bifurcated approach aligns with Australian Prudential Regulation Authority requirements and provides transparency around identified problem loans versus portfolio-level buffers.
The asset composition data from the standardised approach disclosure reveals that real estate dominates Bendigo’s credit exposures. Residential property accounts for approximately $65.2 billion of the post-credit conversion factor exposures, with owner-occupied segments representing the bulk at $46.3 billion. These residential exposures carry risk-weighted assets of $13.8 billion, producing an RWA density of approximately 30 percent, indicating relatively modest credit risk weighting. Commercial real estate contributes a further $10.7 billion in exposures and $8.1 billion in RWA. This concentration in property reflects the typical portfolio composition of Australian regional banks, though it also underscores the sensitivity to residential property cycles and economic conditions affecting borrowers’ ability to service mortgages.
Total risk-weighted assets reached $35.1 billion as at 31 March, with an overall RWA density of 37.5 percent. This metric indicates the proportion of the bank’s asset base that regulators consider exposed to credit risk after applying standardised risk weights. The density level demonstrates reasonable capital efficiency, though it warrants monitoring given ongoing interest rate dynamics and potential implications for borrower serviceability across the portfolio.
Investors should watch for trends in the non-performing ratio as economic conditions evolve and interest rate settings adjust. Quarterly movements in provision levels, particularly specific provisions, may signal emerging stress in particular portfolio segments. Additionally, the regulatory capital metrics disclosed alongside these credit risk tables, including Common Equity Tier 1 capital ratios, provide the complete picture of Bendigo’s capacity to absorb potential credit losses. This announcement is price sensitive and has been classified as material information by the ASX.
View the full ASX announcement (PDF)
About Bendigo and Adelaide Bank Limited (ASX: BEN)
An Australian financial institution formed by the merger of Bendigo Bank and Adelaide Bank in 2007, headquartered in Bendigo. The bank provides retail banking, business banking, and financial services including personal loans, mortgages, investment products, insurance, and superannuation through more than 400 branches. It serves retail customers and small to medium-sized businesses across Australia.
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