Bendigo and Adelaide Bank has agreed to acquire ANZ’s $715 million share investment lending portfolio in order to help grow the regional bank’s margin lending business, Leveraged Equities.
In a statement to the ASX on Thursday, Bendigo and Adelaide Bank stated that it would pay an “immaterial premium over book value” for the portfolio and will fund the deal through the ordinary course of its business operations.
“In line with our vision to be Australia’s leading bank of choice, the acquisition will strengthen Leveraged Equities’ position as an industry leader in margin lending and enhance the scale of our existing operations,” said Bendigo and Adelaide Bank MD and CEO Marnie Baker.
“The portfolio we are acquiring is well-established and primarily comprises retail customers which will complement Leveraged Equities’ client base of professionals and clients under advice. We believe there is a strong future for margin lending in Australia, and this acquisition will create further opportunities for growth.”
With a value of approximately $715 million, the portfolio contained around 11,900 customer facilities as of 31 May. The bank indicated that the deal was expected to take the combined value of its margin lending portfolio to more than $2 billion.
“The acquisition aligns with Leveraged Equities’ growth strategy and ambition to maintain our leading market position,” said head of Leveraged Equities, Lily Elliott.
“As the business grows, we look forward to continuing to deliver a high-quality solution as a trusted partner for customers who are just starting out on their investment journey, clients under advice and investment professionals.”
Bendigo and Adelaide Bank said that the acquisition of ANZ’s investment lending portfolio was expected to be completed in the first half of the 2023 calendar year.
“The divestment is consistent with ANZ’s simplification agenda and the financial impact is not material to ANZ,” ANZ said in a separate statement.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.