Bendigo and Adelaide Bank (ASX:BEN) share price on watch after FY21 results, fintech acquisition

Why the regional bank share is in focus on Monday morning.

| More on:
asx share price on watch represented by lady looking through pair of binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is on watch this morning after the company announced a fintech acquisition alongside its latest full-year results.

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.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Earnings Results

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »