Bendigo and Adelaide Bank (ASX:BEN) has released its Basel III Pillar 3 disclosures for the period ended 30 September 2026, prepared in accordance with Prudential Standard APS 330, showing a CET1 ratio of 11.32%, a Liquidity Coverage Ratio of 145.2%, and total capital of $6,301.7 million.

Key Points

  • CET1 ratio of 11.32% at 30 September 2026, compared with 11.34% at 30 June 2026
  • Total capital increased to $6,301.7 million, driven by the issuance of $300 million in Tier 2 subordinated notes during the quarter
  • Liquidity Coverage Ratio of 145.2% for the September 2026 quarter, up from 140.2% in the June 2026 quarter
  • Total risk-weighted assets decreased by $371.7 million to $39,642.6 million at 30 September 2026 from $40,014.3 million at 30 June 2026
  • Net Stable Funding Ratio increased to 117.7% at 30 September 2026 from 114.7% at 30 June 2026

Capital Ratios and Risk-Weighted Assets at 30 September 2026

The Bank's CET1 ratio decreased by 2 basis points to 11.32% in September 2026 from 11.34% in June 2026. Movements during the quarter included an increase of 23 basis points from net profit earned, a decrease of 42 basis points from the payment of a $191 million final FY26 dividend, partly offset by an increase in share capital of $22 million through the Dividend Reinvestment Plan, and an increase of 11 basis points from lower risk-weighted assets. Total risk-weighted assets fell by $371.7 million, primarily due to a $443.3 million decrease in credit risk RWA driven by settlement of a new securitisation trust eligible for regulatory capital relief and a net decrease in residential lending exposures across third-party lending.

Total Capital Increase Driven by Tier 2 Subordinated Note Issuance

Total capital rose to $6,301.7 million at 30 September 2026, compared with $6,054.6 million at 30 June 2026. The filing states this increase was driven by the issuance of Tier 2 subordinated notes of $300 million during the quarter, partly offset by a decrease in CET1 capital over the same period. The Tier 1 capital ratio was recorded at 13.34% at 30 September 2026, unchanged from 13.34% at 30 June 2026. The total capital ratio was 15.90% at 30 September 2026, compared with 15.13% at 30 June 2026. All disclosures are prepared on an APRA Level 2 regulatory consolidated basis, comprising the Bank and its controlled subsidiaries excluding entities deconsolidated for regulatory capital purposes.

Liquidity Coverage Ratio and Net Stable Funding Ratio

The Liquidity Coverage Ratio for the September 2026 quarter was 145.2%, based on quarterly averages, with liquid assets exceeding net cash outflows by an average of $4.3 billion. Total high-quality liquid assets averaged $13,844.3 million, an increase of $695 million from the prior quarter, driven by investments in state government securities. Total net cash outflows averaged $9,532.7 million, an increase of $151 million. The Net Stable Funding Ratio increased to 117.7% from 114.7%, with available stable funding of $78,130.8 million against required stable funding of $66,385.3 million. The main sources of available stable funding were retail and small business customer deposits at 77%, wholesale deposits and funding at 13%, and capital at 10%.