Image source: Pixabay

Highlights

  • Bendigo and Adelaide Bank is an ASX-listed banking and financial services provider in Australia
  • The Vanguard Group, Inc. has the maximum stake in the company with a shareholding of nearly 4.98%
  • Today, BEN’s shares closed 1.37% up at AUD 8.89 apiece

Bendigo and Adelaide Bank Limited (ASX: BEN) is an Australian banking and financial services provider. The company offers a wide range of services such as foreign exchange, treasury, superannuation, wealth management, payment services and deposit-taking services.

The banking institution reported a 15.3% YoY rise in cash earnings to AUD 576.9 million in the financial year 2023 (FY23) and a 20 basis points surge in net interest margin to 1.94%. During the second half of FY23, the digital home loan offerings recorded a growth of around 12% of total residential settlements.

Top 10 shareholders of BEN

The top 10 shareholders of BEN have around 18.49% shareholding in the company, with the Vanguard Group, Inc. having the maximum stake of 4.98%, followed by the State Street Global Advisors Australia Ltd., which has around 3.44% shareholding.

Growth prospects

The Australian financial sector might benefit from the increasing interest rates and improvement in APRA statistics towards the superannuation and insurance space. In the June 2023 quarter, the total managed funds industry appreciated by AUD 72.7 billion and recorded funds under management of AUD 4,571.4 billion. In September 2023, the new loan commitments from housing increased by 0.6% month-over-month (MoM), and new loan commitments from fixed-term personal finance grew by 2.7% MoM.

Moreover, in September 2023, the business lending activities enhanced with a 10.5% MoM increase in business construction loans and a 4.8% MoM increase in the business purchase of property loans.

In the June 2032 quarter, the superannuation assets surged by 7.6% and reached AUD 3,541.4 billion.

Key challenges

In September 2023, the loan commitments for personal investment decreased by 1.6% month-over-month (MoM). For the June 2023 quarter, the minimum liquidity holdings ratio and net stable funding ratio of the authorized deposit-taking institutions dropped by 3.7 and 0.2 percentage points, respectively.

Outlook

In the second half of FY23, the company made around AUD 58.4 million and AUD 31.7 million investment in foundational technology and risk & compliance (open banking), respectively.. Foundational technology includes collateral management, core banking and lending transformational programs.

Share performance of BEN

BEN’s shares closed ~1.37% up at AUD 8.89 apiece on 2 November 2023. Including this gain, BEN’s share price has dropped by 11.28% in the past nine months and has increased by 5.83% in the last six months.

The 52-week high of BEN is AUD 10.2 apiece, recorded on 8 February 2023, and the 52-week low is AUD 8.24 apiece, recorded on 4 May 2023.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 02 November 2023. The reference data in this report has been partly sourced from REFINITIV.