The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has fallen off a cliff since 13 August, down 16%.
In comparison, its peers, Bank of Queensland Limited (ASX: BOQ), Commonwealth Bank of Australia (ASX: CBA), and Westpac Banking Corp (ASX: WBC) are down just 4.3%, 3.2%, and 3.3% respectively.
The Bendigo and Adelaide Bank hasn't released any market sensitive news since its full-year results on 16 August. However, we recap on the company's latest performance and broker updates.
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How did Bendigo and Adelaide Bank perform in FY21?
During last month, Bendigo and Adelaide Bank delivered its FY21 scorecard to the ASX, reporting mostly positive numbers.
Here's a quick summary of the highlights mentioned in the release:
- Statutory net profit of $524 million, up 172% on the prior corresponding period;
- Cash earnings after tax of $457.2 million, up 51.5%;
- Net interest margin of 2.26%, down 7% basis points;
- Total income on cash basis of $1,702.5 million, up 4.5%
- Total lending of $72.2 billion, up 10.6%;
- Common Equity Tier 1 (CET1) ratio of 9.57%, up 32 basis points;
- Total deposits of $78 billion, up 15.2%; and
- Final fully-franked dividend of 50 cents per share, an increase of the 28 cents declared in H1 FY21.
As a whole, investors appeared unmoved by the company's latest results, sending its shares sideways until the beginning of September.
Bendigo and Adelaide Bank managing director and CEO, Marnie Baker commented:
These results – supported by a clear vision, purpose and strategy – reinforce our unique position as we look to further capitalise on the ever-expanding opportunities that lie ahead of us.
We continue to accelerate our digital and customer experience transformation to drive above system lending and ongoing customer growth. This investment is combining our human, digital and community strengths to shape future banking for our customers.
What do the brokers think?
Following its results, a number of brokers weighed in on the Bendigo and Adelaide Bank share price.
Multinational investment bank, Goldman Sachs cut its rating by 2.3% to $10.50 for the company's shares. Credit Suisse had a more bearish outlook, reducing its view by 4.4% to $9.80.
The last broker note came from JPMorgan, in which its analyst raised its assessment on Bendigo and Adelaide Bank shares by 3.1% to $10. Based on the current share price of $9.30, this implies an upside of around 7%.
Bendigo and Adelaide Bank share price snapshot
Over the past 12 months, the Bendigo and Adelaide Bank price has gained more than 50% but is flat year-to-date. Currently, the company's shares are sitting slightly higher than the middle of its 52-week range of $5.80 to $11.68.
Bendigo and Adelaide Bank commands a market capitalisation of around $5.19 billion and has approximately 556 million shares outstanding.
