Bendigo and Adelaide Bank Limited has released its Basel III Pillar 3 disclosures for the quarter ended 31 March 2026, demonstrating capital and liquidity positions well above regulatory minimums. The bank’s Common Equity Tier 1 (CET1) ratio stands at 11.38%, comfortably above both the prudential requirement and the additional buffers imposed by the Australian Prudential Regulation Authority.
Basel III Pillar 3 disclosures represent a cornerstone of modern banking regulation. Rather than imposing restrictions directly, these standards require banks to publicly disclose detailed information about their capital, risk exposures, and liquidity management. The theory is sound: transparency allows markets to price risk appropriately and creates competitive pressure for prudent risk management. BEN’s disclosure, prepared under the updated Prudential Standard APS 330 effective from January 2025, aligns with international Basel Committee standards and provides investors with comparable metrics across global financial institutions.
BEN’s capital position looks solid across all three standard measures. The Tier 1 ratio of 13.41% and total capital ratio of 15.21% both reflect a well-capitalized balance sheet. More notably, the bank’s CET1 capital available after meeting minimum requirements stands at 6.88%, providing a comfortable buffer beyond regulatory thresholds. On the liquidity front, the Liquidity Coverage Ratio of 135.7% well exceeds the 100% regulatory minimum, while the Net Stable Funding Ratio of 117.6% demonstrates the bank can fund operations through a severe stress scenario. Comparing these metrics to the prior quarter shows stability, with the CET1 ratio declining slightly from 11.37% in December 2025, though remaining well within acceptable ranges.
For investors, these metrics signal a bank well-positioned to weather economic downturns and regulatory changes without requiring capital raises or dividend cuts. The bank has embedded operational risk capital overlays of $625 million in risk-weighted assets, showing proactive risk management in a volatile environment. BEN’s relative position suggests the institution can sustain lending during credit stress and maintain distributions to shareholders. The disclosure also reflects attestation from the bank’s Chief Financial Officer and Chief Risk Officer that these figures have been verified through internal governance procedures.
Going forward, investors should monitor whether BEN’s capital ratios remain stable as the economy evolves and loan impairment costs potentially rise. Any material shifts in the CET1 ratio or liquidity metrics would signal changing risk profiles or lending strategy. Regulatory changes to buffer requirements, particularly any increase to the countercyclical buffer from its current 1%, would directly impact the capital available for shareholder distributions. This announcement is price sensitive and has been flagged as material 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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