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.
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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%.
