The Bendigo Bank (ASX:BEN) share price has outperformed the big four

Since this time last year, the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has performed better than those of the big four banks.

| More on:
outperforming asx share price represented by row of white eggs with cartoon sad faces with one gold egg with happy face and crown

Image source: Getty Images

Since this time last year, shares in Bendigo and Adelaide Bank Ltd (ASX: BEN) have performed better than those in Australia’s big four banks. The Bendigo Bank share price has gained 82.62% over the last 12 months.

That’s an ever-so-slightly superior result than the best performing of the big four banks, Australian and New Zealand Banking Group Ltd (ASX: ANZ), and notably better than the other three banks. The ANZ share price has gained 82.05% since 14 May 2020 and the other three majors have each gained between 65% and 71%.

At the time of writing, the Bendigo Bank share price is trading at $10.30, up 1.2% for the day so far.

Let’s take a look at what’s been happening for Bendigo Bank over the last 12 months.

The year that’s been for the Bendigo Bank share price

This time last year, Bendigo Bank shareholders would not have been as happy as they are today. The bank’s share price, along with those of most other ASX 200 companies, had plunged as a result of the coronavirus-induced recession. In fact, one year ago, Bendigo shares were only a matter of days off hitting their lowest closing price since 2001.

On 22 May 2020, the Bendigo Bank share price closed at $5.57, yet now it is arguably within striking distance of double this.

Following its lowest point, the Bendigo Bank share price was helped along by improving investor sentiment and a positive broker note on 9 June, which saw the company’s value surge 9.4% higher.

In July last year, most Australian bank shares were once again hammered by coronavirus concerns, as Victoria and New South Wales both saw an increase in case numbers. Shares in Bendigo Bank also took a plunge. Between 17 July and 20 July, the bank’s share price fell 5%.

End of 2020 financial year results

On 17 August 2020, Bendigo Bank published dire end-of-year results. Its net profit after tax fell 48.8% lower than the previous year’s.

Its bad and doubtful debts grew to reach $168.5 million. That figure included a coronavirus collective provision worth $127.7 million.

The results caused the bank’s share price to close 6.5% lower than it had the previous session.

First-quarter results

Bendigo Bank then went a little quiet for two months before releasing its first-quarter update in late October.

The update stated the bank had had a good start to the 2021 financial year.

Over the quarter, it achieved total lending growth of 11% and residential lending growth of 16.1%.

In the middle of October, it had 6,797 customer accounts still on deferral– 69% less than the peak on 31 May.

The value of deferred repayments was also down, comprising just $2.5 billion worth compared to $6.9 billion worth in June.

On 28 October, Bendigo also announced it was undertaking a capital raise, the news of which had little impact on its share price.

Half-year results

On 15 February 2021, the Bendigo Bank share price closed 7.9% higher than the previous session after the bank released its half-year results.

The results included a positive outlook and a number of improvements on the company’s full-year results.

For the half-year ended 31 December, the bank had a total income growth of 3.3% – raking in $849 million. It also had statutory net profit growth of 67.3% to $243.9 million.

The bank reported cash earnings of $219.7 million – 1.9% higher than the previous period as well as a fully franked dividend of 28 cents per share.

Finally, it reported its bad and doubtful debts had fallen another 15.9%, totalling just $19.5 million.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares