Own Bendigo Bank (ASX:BEN) shares? Then you also own these 5 other banks

Bendigo and Adelaide Bank may not be in the Big 4, but it sure packs a punch as the owner of 5 other financial institutions

| More on:
A business woman flexes her muscles overlooking a city scape below

Image source: Getty Images

The ASX banking scene here in Australia is a little more complicated than it may initially seem. Whilst we ASX investors love to discuss the big 4 ASX banks, there appear to be dozens of banking brands throughout the country that might make us forget about the old ‘four pillars’ policy.

Four pillars was the brainchild of former treasurer and prime minister Paul Keating, and was designed to ensure that the largest 4 banks in Australia would never be allowed to merge or consolidate further.

That’s all well and good, you might think, but there are far more than 4 banks in Australia…

Well, there may not be as many as you might think.

4 pillars, but 20 lenders?

Most of the big 4 ASX banks house banking brands outside their own. Many investors over a certain age might remember the blockbuster merger of Westpac Banking Corp (ASX: WBC) with St. George Bank way back in 2008.

You might think St George is its own bank today, going off of its separate branding, advertising campaigns and branches. But it is in fact still a complete subsidiary of Westpac. As are Bank of Melbourne and BankSA, mind you. Westpac also owns the wealth manager BT, as well as the home loan provider Rams.

Likewise, Commonwealth Bank of Australia (ASX: CBA) also owns Bankwest, as well as stakes in Colonial First State and Aussie Home Loans

National Australia Bank Ltd (ASX: NAB) owns the online-only brand Ubank, as well as the recently acquired neobank 86 400.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) is the only big four bank that seems to just stick with its main branding house.

But what of the other ASX banks outside the big four? Specifically Bendigo and Adelaide Banking Group Ltd (ASX: BEN)?

What other banks do Bendigo and Adelaide Bank shareholders own?

Well, it turns out Bendigo Bank is well as truly on the ‘divide and conquer’ train. According to this bank’s website, it owns both the Bendigo Bank and Adelaide Bank names (duh). But in addition to these flagship brands, this company also houses Rural Bank, Community Bank, DelphiBank and Alliance Bank. It also recently acquired the neobank Up.

In addition to these banking brands, Bendigo and Adelaide Bank also owns wealth manager Sandhurst Trustees.

So if you own Bendigo and Adelaide Bank shares, you really own a lot more than just those two names. Something to keep in mind for all banking investors today!

At Bendigo and Adelaide Bank’s last share price of $9.44 (at the time of writing), this ASX bank has a market capitalisation of $5.29 billion and a dividend yield of 5.79%.

Should you invest $1,000 in Bendigo Bank right now?

Before you consider Bendigo Bank, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bendigo Bank wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bendigo and Adelaide Bank Limited. 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