Why has the Bendigo Bank (ASX:BEN) share price been smashing BOQ in 2022?

Could this be why shares in Bank of Queensland are underperforming those of Bendigo Bank in 2022?

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Key points

  • The Bendigo Bank share price has significantly outperformed that of the Bank of Queensland over the course of 2022 so far 
  • Bendigo Bank's shares have also outperformed Bank of Queensland's shares over the last 12 months, as well as over the last 5 years 
  • Though, the banks were performing inline with one another in 2022 until Bendigo Bank released its interim results. The Bank of Queensland is set to drop its own half-year earnings next month 

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been outperforming its closest rival in 2022.

It has gained 9.15% year to date, whereas the Bank of Queensland Limited (ASX:BOQ) share price has increased just 1.56%.

Though, both banks have been outperforming the broader market lately. So far this year, the S&P/ASX 200 Index (ASX: XJO) has slumped 2.67% while the All Ordinaries Index (ASX: XAO) has fallen 3.25%.

So, what’s been driving one of the two smaller banks to outperform the other lately? Let’s take a look.

Why is the Bendigo Bank share price outperforming BOQ’s?

The Bendigo Bank share price has had a great start to 2022. It has outperformed all but one of the ASX’s major banks’ stocks over the year so far.

Australia’s fifth largest retail bank’s shares were bolstered earlier this year by the release of its half-year results.

Bendigo Bank reported an 8.5% increase in revenue over the first half of financial year 2022, as well as a 31.7% boost to statutory net profit.

Its cash earnings also increased 18.7% while its net interest margin compressed 14 basis points.

Potentially more notable though was Bendigo Bank’s bolstered dividend.

The bank announced it would be providing shareholders with a fully franked 26.5 cent dividend. That was 12.8% more than its previous interim dividend.

The Bendigo Bank share price gained 4.4% on the back of its half year results.

It’s worth noting that, on the release of its results, Bendigo Bank’s stock stopped trading alongside the S&P/ASX Financials Index (ASX: XFJ), as it had been previously.

Sadly, the Bank of Queensland share price hasn’t experienced such a boost – yet. Additionally, it has been mirroring the financial sector in 2022.

The Bank of Queensland is set to release its interim results on 14 April. No doubt, the market will be keeping a close eye on how it performed over the first half.

It’s also worth noting, brokers are bullish on both Bendigo Bank and the Bank of Queensland.

As The Motley Fool Australia’s Zach Bristow recently reported, 73% of analysts covering Bank of Queensland believe its shares are a buy.

Meanwhile, brokers at Credit Suisse, Morgans, and Jarden Australia all recently upgraded their outlook on Bendigo Bank shares, as my colleague Monica O’Shea reports.

Motley Fool contributor Brooke Cooper 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 owns 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.

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