Bendigo and Adelaide Bank share price in focus as cash earnings jump 52%
The Aussie regional bank this morning reported its full-year results for the period ended 30 June 2021. Some of the key highlights from the release are listed below:
- Statutory net profit after tax up 172% to $524.0 million.
- Cash earnings after tax up 51.5% to $457.2 million.
- Net interest margin (NIM) down 7 basis points to 2.26%.
- Total lending up 10.6% to $72.2 billion.
- Common Equity Tier 1 (CET1) ratio up 32 basis points to 9.57%.
- Total deposits up 15.2% to $78.0 million.
- Fully franked dividend of 50 cents per share.
Investors will be keeping an eye on the Bendigo and Adelaide Bank share price this morning after the financial result and the announcement the bank will acquire Melbourne-based fintech Ferocia for up to $116 million.
What did management say?
Bendigo and Adelaide Bank managing director and CEO Marnie Baker commented on the company’s results:
These results clearly demonstrate our strategy is making us a bigger, better and stronger business. We have delivered on what we said we would do and more by growing customer numbers and market share in both lending and deposits.
We anticipate economic and market conditions will continue to provide both ongoing challenges and opportunities for our Bank.
While we expect the housing and employment markets to grow nationally – as well as the economic expansion of regional Australia – we remain cautious of the potential impacts of further pandemic-induced lockdowns, a slower than initially anticipated vaccine rollout and take-up, international trade sentiment and the continuing effects of natural disasters, and climate change.
At the same time, we are encouraged by measures introduced by state and federal governments to aid Australia’s economic recovery.
What about the Ferocia acquisition?
The Bendigo and Adelaide Bank share price was already one to watch after the company’s financial results update. However, the acquisition announcement adds further interest to today’s share price performance.
Bendigo and Adelaide Bank will acquire the Aussie fintech to “further accelerate the Bank’s digital strategy and shape the future of banking for a new generation of customers.”
The acquisition will further consolidate the bank’s ownership of its existing neobank, Up, to continue its push into the fintech space. Bendigo and Adelaide Bank will acquire 100% of the shares in Ferocia for consideration of up to $116 million.
How has the Bendigo and Adelaide Bank share price been performing?
Shares in the regional bank have climbed 17.5% to $11.10 per share in 2021. It’s been a strong year for the ASX bank share which has outperformed the S&P/ASX 200 Index (ASX: XJO) by 3.4%.
Prior to Monday’s open, the Bendigo and Adelaide Bank share price was sitting just shy of its $11.68 52-week high.